THUNDER BAY – Canada is not immune to the politics that gave life to Donald Trump, says the country’s former ambassador to the United States.
Derek Burney, in a speech to about 400 people on Thursday night at St. Andrew's Presbyterian Church, said Canada’s combined federal and provincial debt has hit a staggering $1.3 trillion.
Continued overspending, policy mismanagement and skewed priorities detract from the true responsibility of government, Burney said.
“They feed cynicism and stir frustration and resentment in many populations. That is what helps stimulate support for Donald Trump in America, for Brexit in the UK and is fuelling populist sentiments now across Europe,” said the Fort William-born Burney, a longtime Conservative who once served as chief of staff to former prime minister Brian Mulroney.
“Canada may be relatively immune now, but for how long? Our governments need to connect better with the citizens they serve.”
Calling Trump a maverick and nominally a Republican, Burney said the billionaire first-time politician has been openly disdainful of the efforts of previous governments on either side of the political spectrum. He’s promised to shake up the Washington power structure and rejects trade with other nations for trade’s sake.
The showman who authored The Art of the Deal is looking for an American edge.
“The key question,” said Burney, “is how much of his protectionist fervour is bluster, intended to cajole compliance, a tactic that’s working in some American circles. And how much will translate into more negative action?”
There is good news amidst all the noise emanating from the White House.
“Unlike Mexico, Canada is not really the target of Trump’s anti-trade tirades. That was confirmed during Prime Minister (Justin) Trudeau’s first meeting with Trump last month. The tone was cordial, and to some extent reassuring,” the 77-year-old Burney said.
The U.S. president is particularly annoyed by U.S. firms moving plants and jobs to other countries, in particular China and Mexico, the latter of which he’s threatened to impose a 20 per cent tariff on all goods coming into American from their neighbours to the south.
Burney said Canada still remains the United States’ largest trading partner, calling it a healthy balance.
“Furthermore, Canada is not attracting U.S. firms to move here these days, more is the pity,” Burney said. “On the contrary, some in Ontario are doing the opposite, and when you open your electricity bill you know precisely why.”
Canada can win in the age of Trump, but it must be vigilant to the tweaks the Americans have in mind in regards to renegotiations surrounding the North American Free Trade Agreement, and prepare for all contingencies.
“As a consummate deal-maker, Trump likes to win. As president he’s going to have to realize that when dealing with a neighbour and an ally, wins must be mutual,” said Burney, who helped craft NAFTA in the mid-1980s. “We have to be on high alert because we could be a victim, even if we’re not the target, of (protectionism).”
The key may be to impress on Americans everywhere just how valuable trade with Canada is to them and how damage to either partner inevitably damages both.
“Maxim number one for any Canadian negotiator is that no deal is better than a bad deal.”
