WORLD

TRADE TENSIONS RISE: CANADA HOLDS GROUND AMID US TARIFF DISPUTE

19/03/2025 01:47 PM

By Wan Muhammad Aslah Wan Razali

KUALA LUMPUR, March 19 (Bernama) -- Canada is standing its ground against escalating trade tensions with the United States (US) while navigating a political transition under new leadership. 

Canada’s High Commissioner to Malaysia, Jodi Robinson, reaffirmed the country’s unwavering stance on trade disputes and outlined Prime Minister Mark Carney’s vision for a leaner, more fiscally responsible government.

The high commissioner dismissed concerns that Canada would back down in the face of mounting economic pressures, especially after the US announced new tariffs on the country.

“This is not the first time we have faced a dispute of this magnitude. Canada’s response has been strong, and we will continue to stand up for Canadians,” she said in an exclusive interview with Bernama International News Service. 

She pointed to counter-tariffs imposed on US goods as evidence of the government’s resolve, noting that public sentiment overwhelmingly supports the move.

“With the counter-tariffs, Canadians are showing support across the board. Canadians are taking action on their own - cancelling trips to the US, and buying Canadian products. 

“The (Canadian) government is not telling them to do this; it is their own approach,” she said.

While Canada remains committed to dialogue, Robinson emphasised that negotiations must be rooted in mutual respect. 

“Trading partners need to sit down and talk, and we’ve been engaging with the US administration since before the inauguration, and we will continue to do so,” she said.

As Canada navigates its leadership transition, Robinson acknowledged the political uncertainty but highlighted Carney’s decisive steps toward restructuring the government. 

“It is very difficult to say right now; it could really go either way,” she admitted when asked whether the country would see a change in government in the upcoming elections.

Robinson, however, pointed to Carney’s immediate actions, including downsizing the cabinet from 37 to 24 ministers, signalling a shift toward fiscal discipline.

“Prime Minister Carney has made it very clear he wants to bring the Liberal Party of Canada back to the centre. 

“His first action was to create a smaller government. We had 37 ministers under Prime Minister Trudeau; now we have 24. That is a clear indication he is focused on efficiency,” she said.

The reduction in cabinet size has sparked speculation about potential job cuts in the civil service, but Robinson reassured that changes would be gradual. 

“We have already been going through a couple of years of reductions, but much of that has been through retirements,” she explained. 

At the same time, she affirmed that diversity and inclusion remain a priority for the Canadian government. 

Meanwhile, Robinson also addressed the growing wave of populism and misinformation surrounding Canada’s trade policies, particularly the US claims about unfair trade practices. 

She stressed the urgent need for nations, including Malaysia, to actively combat misinformation in an era where misleading narratives can shape public perception and policy. 

She highlighted the prevalence of inaccurate statements made by the US administration, emphasising the importance of setting the record straight. 

“The current US administration has made many statements that are actually not accurate. 

“And so we are constantly - whether through interviews with Fox News, CNN, or newspaper discussions with governors across the US - correcting those statements,” she said. 

This, she said is a crucial responsibility for governments looking to safeguard their economic and political interests.

Robinson rejected accusations that Canada is exploiting the US dairy industry, clarifying that trade terms were mutually agreed upon under the North American Free Trade Agreement (NAFTA).

“When President Trump claimed that Canada was ‘ripping off’ the US dairy industry, that was simply not true.

“Canada has a quota system for dairy, and the US negotiated those terms under NAFTA. They have free access to our market up to a certain threshold, and they have never even reached that limit. 

“No US dairy has been subject to tariffs under the renegotiation,” she explained. 

She also refuted claims that Canada enjoys an unfair trade surplus with the US, explaining that, from a manufacturing and goods trade perspective, Canada actually runs a deficit. 

She said Canada is the US’ largest customer, purchasing more from them than China, Japan, and France combined. 

She also acknowledged that Canada has a surplus in energy trade but pointed out that the country sells raw oil to the US at a discounted rate, which the US then processes and exports at three times the price.

Furthermore, on the international stage, Robinson reiterated Canada’s commitment to defending its sovereignty. 

She said that Prime Minister Carney had recently stressed the importance of this stance during his trip to France and the United Kingdom (UK), making it clear that Canada is prepared to stand up alone.

While recognising the importance of US trade relations, she noted that Canada will make independent economic decisions. 

“Every sovereign nation must decide on their own how best to approach threats, whether from the US or any other country. 

“For Canada, 76 per cent of our trade is with the US, so our response is critical,” she said.

Despite tensions, Robinson also acknowledged the deep ties between the two nations while defending Canada’s distinct identity, implying that Canada is an independent nation with its own values and worldview. 

As Canada pushes back against trade pressures and embraces a new political direction, Robinson made it clear that Canada will not compromise its principles or its sovereignty. 

“Canadians will feel hurt by these attacks, but we will stand strong,” she added.

-- BERNAMA

 

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