Trade issues with China and potentially the United States face Federal Agriculture Minister Lawrence MacAulay.
President-Elect Donald Trump is threatening a 25 per cent tariff on Canadian goods imported into the U.S. once he takes office in January. Trump said in a social media post the tariff would remain in place until Canada stops drugs and people from illegally crossing the border; Mexico is facing the same tariff rhetoric. Another potential issue with Trump is his intention to re-negotiate the Canada-U.S.-Mexico trade agreement with Canada’s supply managed industries like dairy being in the cross-hairs.
The subject came up while MacAulay was attending the first day of Canadian Western Agribition, where he gave opening remarks prior to the burning of the brand. MacAulay said he views the Americans as friends and emphasized the importance of cross-border trade with the U.S. to reporters.
“In the beef industry and many other industries we’re so inter-twined and it’s so vitally important,” the Ag Minister said. “(An) example cattle might go across the border four or five times in its lifetime so these kind of things are a big issue but we intent to deal with the Trump administration as friends and be sure we can continue the trade. Nobody wants to hurt anybody – we just want to make sure that we have prosperity continues for everybody. It’s been very beneficial for the U.S. and it’s been very beneficial for Canada.”
Groups including the Canadian Chamber of Commerce, and Canadian Manufacturers and Exporters say if Trump follows through it will mean pain for Canada. The Chamber of Commerce also says Canada needs to change its approach to trade talks with the Chamber’s President and CEO Candace Laing saying “being America’s ‘nice neighbour’ won’t get us anywhere.” Prime Minister Justin Trudeau, who spoke with Trump on Tuesday, met with the Premiers on Wednesday to discuss the matter. The House of Commons also held an emergency debate on the issue Tuesday night. The Loonie meanwhile reached its lowest point since May 2020 of 71.07 cents US as a result of the tariff announcement from Trump.
The other trade front MacAulay is dealing with is China, who is in the middle of an anti-dumping investigation into Canadian canola imports. The probe was in response to Canada implementing 100 per cent tariffs on Chinese EV’s and a 25 per cent tariff on Chinese steel and aluminium coming into the country. MacAulay was there last week to promote Canada’s agri-food products and noted China is Canada’s second largest trading partner, behind the U.S. The Ag Minister wasn’t given an update by the Chinese regarding its investigation when asked by a reporter.
“I think it’s very important not to speculate on anything, you know, you deal with every government as best you can to make sure…the ag sector is represented and with that, it’s important for every country to understand the value of trade.” MacAulay said.
In addition to giving opening remarks prior to the burning of the brand at Agribition on Monday morning, MacAulay on Tuesday gave opening remarks at the Indigenous Agriculture Summit and at the Grain Expo and participated in a round-table meeting with Canadian cattle groups.
At the Grain Expo, he re-iterated a federal investment of over $10.8 million for 10 projects that support new technology for agri-businesses in the province, from farm machinery to Indigenous farming.
At the round-table, MacAulay noted a $5.4 million investment from Ottawa for five projects that would support, among other things, improved market access, helping producers adopt more sustainable practices, and promoting Canada’s reputation as a leader in top-quality beef production.