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'Time is running out': Experts call on Ottawa to increase efforts with U.S. on trade

WASHINGTON, D. C. 鈥 A group of experts is sounding the alarm that Ottawa needs to swiftly make more inroads with Americans, or sa国际传媒 will be deeply disadvantaged in a looming review of a crucial trade agreement.
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U.S. President Donald Trump, left, and Canadian Prime Minister Justin Trudeau talk prior to a NATO round table meeting at The Grove hotel and resort in Watford, Hertfordshire, England, Wednesday, Dec. 4, 2019. A group of experts is sounding the alarm that Ottawa needs to rapidly ramp up efforts to build inroads with Americans or sa国际传媒 will be disadvantaged in a looming review of a critical trade agreement. THE CANADIAN PRESS/AP-Frank Augstein

WASHINGTON, D. C. 鈥 A group of experts is sounding the alarm that Ottawa needs to swiftly make more inroads with Americans, or sa国际传媒 will be deeply disadvantaged in a looming review of a crucial trade agreement.

"Time is running out very rapidly for us," said Perrin Beatty, co-chair of the Expert Group on sa国际传媒-U.S. Relations.

The independent group, which includes former diplomats, policy advisers and business leaders, was created in recent months amid concern Ottawa was "sleepwalking" ahead of a 2026 review of the sa国际传媒-United States-Mexico agreement, Beatty said.

A new report from the expert group says sa国际传媒 must get its house in order before formal talks begin. It calls on Ottawa to develop and initiate a clear strategy, appoint a chief negotiator and engage with sa国际传媒's business community.

鈥淭he train is fast moving out of the station,鈥 said Beatty, also president and CEO of the Canadian Chamber of Commerce.

Negotiation of CUSMA, commonly dubbed "the new NAFTA" in sa国际传媒, was a key test for Ottawa following Donald Trump's victory in the 2016 presidential election.

鈥淭he new NAFTA is a victory for all Canadians, of every political view, and in all regions of the country," Deputy Prime Minister Chrystia Freeland said in January 2020. "It has been a real Team sa国际传媒 effort.鈥

Even so, Robert Lighthizer, Trump鈥檚 trade representative, critically recounted in his book how sa国际传媒 handled the renegotiation, saying at one point the two countries weren't speaking and "NAFTA was hanging on by a thread."

The new report describes Trump's current relationship with the Liberal government as "chilly at best." If Trump returns to the White House, he is likely to set his sights on disrupting global trade and has already signalled plans for a 10 per cent tariff on imports.

It doesn鈥檛 necessarily mean sa国际传媒 can ease up efforts under a Democratic president. Joe Biden largely kept Trump's tariffs in place, despite promises to reverse them. There was also tension over the Biden administration's Buy American procurement rules.

Many expect Kamala Harris, working to secure the Democratic nomination after Biden ended his run, will follow the path of her predecessor on sa国际传媒-U.S. relations. Harris, however, was one of 10 U.S. senators to vote against the trilateral agreement under Trump, saying it didn鈥檛 do enough to protect American workers or the environment.

The federal government is tracking views about the agreement in sa国际传媒, the United States and Mexico, said Global Affairs sa国际传媒 spokesperson Jean-Pierre Godbout. Ottawa is eyeing a range of potential scenarios for review, he said.

"When the time comes, the government will be ready to advance and defend Canadian interests," Godbout said in an email.

Beatty said the problem is the relationship between the two countries has "shifted from being strategic to being transactional." In addition, sa国际传媒 has become a less important trade partner to the U.S. compared with other places in the world.

Ottawa will have to sell sa国际传媒's importance for other things like security, said Fen Hampson, co-chair of the expert group.

"It's not going to be easy," said Hampson, a professor of international affairs at Carleton University. "We really have to up our game."

Industry Minister Fran莽ois-Philippe Champagne is making regular visits south of the border as part of the Team sa国际传媒 engagement strategy. sa国际传媒's ambassador to the U.S., Kirsten Hillman, has been pounding the pavement from state to state, and attended the recent Republican National Convention in Milwaukee, where she made Ottawa鈥檚 case.

But the report says there are limits to sa国际传媒's charm offensive. Americans are taking a closer look at sa国际传媒, but not in a good way.

Trudeau faced significant pressure over sa国际传媒's defence spending while in Washington for the NATO leaders' summit earlier this month.

The prime minister promised to meet NATO's target, the equivalent of two per cent of gross domestic product, by 2032. But he has been criticized for the lengthy timeline and a lack of detail on how Ottawa will make it happen.

Americans across political lines have also been extremely critical of sa国际传媒's new tax on large foreign digital services companies. The Office of the United States Trade Representative has said it will do what's necessary to stop the tax.

sa国际传媒 must stop "pulling at the tail feathers of the American eagle," positioning sa国际传媒 as part of the solution instead of part of the problem, Beatty said.

That means the federal government should develop a Hippocratic Oath, like the one taken by physicians, he said.

"First do no harm."

This report by The Canadian Press was first published July 26, 2024.

Kelly Geraldine Malone, The Canadian Press