Trump-Carney exchange fuels trade tension but won't derail USMCA, says Haney
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Trump-Carney exchange fuels trade tension but won't derail USMCA, says Haney
"We seem to like when Prime Minister Carney pushes back a little bit more firmly against President Trump," Haney observed, noting the domestic political appeal of such moments but suggesting they may do little to shift broader dynamics."
"There are integrated value chains between Canada and the U.S. that create economic chaos if they're disrupted," he notes, referencing sectors like cattle and ethanol."
"Canadian farm groups have a real role to play," he says, in ensuring trade integration remains intact and tariffs don't return to the agenda."
Prime Minister Mark Carney's Davos remarks critiqued U.S. trade stance and attracted attention, but the political exchange has limited effect on everyday cross-border commerce. High economic interdependence and integrated value chains between Canada and the U.S., notably in cattle and ethanol, underpin trade and would cause significant disruption if broken. A recent limited Canadian agreement with China on beef, canola, field peas, and lobster irritated Washington while explicitly avoiding a free trade label. As the next USMCA review approaches, active industry-level lobbying on both sides of the border is essential. Canadian farm groups must advocate to preserve integration and prevent a return of tariffs.
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