YORKTON - When it comes to world trade – including agricultural commodities – there are always going to be disruptions.
Countries will have things pop up which are divisive and that too often spills over into trade barriers being created on both sides to bring about an end to the larger dispute – in favour of one country of course. In the middle of it farmers suffer.
But it has been a long time since such a large part of the world has been targeted by ridiculous tariffs by a single country, which is of course what is happening as U.S. president Donald Trump meddles in the natural flow of trade for what appears one reason only – a mirage seen only by Trump that it somehow is a positive for the US.
Certainly, the US has seen industry migrating out of the country over the years seeking production in lower cost countries – but that reality is because big business sought better profits over American jobs.
And of course there are things manufactured, built, created in other countries American consumers desire, and tariffs only push up prices on such things.
That all said, don’t expect Trump to change. He sees the reflection in the mirror as ‘the smartest man in the room’ and reality isn’t likely to change his skewed self-image.
So the rest of the world has to increasingly think of trade minus the US as the significant partner it has been.
What have been minor alliances need to be reviewed and strengthened.
For Canada does that mean looking at unusual things such as inclusion in the European Union? As outside-the-box as that seems, it also can’t be overlooked as a discussion point at least.
The need for stronger non-American alliances is not being lost on other countries either.
A recent www.producer.com noted that Wang Di, China’s ambassador to Canada “wants the two countries to join forces to push back against American “bullying.””
Certainly of late the trade relationship between China and Canada has not been smooth but the Ambassador has suggested tariffs can be dropped as quickly as they were applied.
“China’s countermeasures are not permanent. They can be adjusted in light with the adjustment and changes of the Canadian policies,” he said in an interview with the Canadian Press, according to a transcript published on the embassy’s website, detailed the article.
That would seem to open the door to negotiations to smooth the ongoing trade dispute, and one hopes re-minted Prime Minister Mark Carney walks through to get a deal done.
The US of course is a huge market, but with Trump entrenched in the White House it is a quagmire of uncertainty in terms of trade, so the world needs to respond and that has to be a huge focus for Carney with renewed trade ties to China a good first step given it’s huge population to serve.
