Statement on Canada's Trade Policy Direction

Canadians have every right to be angry and concerned. President Donald Trump’s tariffs have caused significant job losses and transitioning Canada’s economy away from the US is an uncertain process that may take years. In the meantime, Canadians need to feed their families and pay their bills and this economic disruption makes this more challenging. 

However, the trade policies being pursued by the Canadian government both before and after the breakdown of talks with the United States do not offer a real alternative that promotes fair trade or helps Canada address the challenges it faces. 

While there was much to critique during previous governments’ claims about a progressive vision for trade, the Carney government quickly pivoted away from framing trade policy around gender justice, Indigenous participation, labour rights or distributing the benefits of trade among underrepresented groups. Carney did not formally repudiate Canada’s inclusive trade framework, but the language of his government has shifted towards economic security, national resilience, commercial pragmatism and “value-based realism” as the famous Davos speech articulated. This should raise red flags for Canadians moving forward.

This “value-based realism” is doubling down on more of the same that fails Canadian workers and communities. As other countries either move to limit or move fully away from Investor-State Dispute Settlement (ISDS). International Trade Minister Maninder Sidhu told the House of Commons Standing Committee on International Trade that “Canada has been one of the most frequent users of ISDS mechanisms, and they’re working.”

ISDS allows foreign corporations the power to challenge democratically legislated labour, Indigenous, environmental, health and social policies outside domestic courts, curbing governments’ willingness to regulate the economy in the public interest. Other countries have been moving to reject or limit ISDS. Canada’s continued reliance on it risks making it an outlier at a time when it needs to forge new international partnerships.

The Carney government is also rolling out the red carpet for big business while it attempts to restrict the right to strike for workers. It is now moving to fast-track trade deals through parliament. That is not acceptable or sustainable.

The recent layoffs at Stelco in Hamilton show this is a pressing issue that workers cannot wait for. Those Stelco workers facing job losses will be the real test to show who will bear the brunt of the trade war with the United States. What counts as the national interest has always been contested between those with wealth and power and those who have none. So far, it looks like those with wealth and power are the ones defining it.  

What Canadians deserve in a new economy is one that protects both workers and democracy. One that recognizes Indigenous rights and protects the environment. And one that invests in the care economy and communities that have left behind. Those principles should be behind Canada’s trade policy in this rapidly changing world, not more of the same.