Canada diversifies trade at U.S.-hosted G20 meeting with Europe and India talks

Summary

On Wednesday, trade ministers from the world's largest economies met in Milwaukee at a U.S.-hosted G20 meeting. The day before, a U.S. import ban took effect that shut most Canadian alcohol out of the American market. Ottawa sent Maninder Sidhu, the international trade minister, rather than Dominic LeBlanc, who handles the Canada-U.S. file. Canada rejected Washington's offer in August, yet LeBlanc and Jamieson Greer still speak several times a week.

Sidhu calls trade diversification Canada's plan A, citing trade with non-U.S. partners up 17% in one year, worth $33 billion. Nearly one third of Canadian exports now go outside the United States, the highest share in 40 years. The video ties this to Canada's EU and India moves: a March enhancement of the EU trade deal and a September 16 Strasbourg meeting between Mark Carney and Ursula von der Leyen that opened the door to associate EU membership.

At the heart of the video is Washington's proposal to change the WTO's Most-Favoured Nation rule, which requires members to treat one another equally. A Toronto trade lawyer at McCarthy Tétrault warns that softening it would make trade more unpredictable. The video argues Canada wants the rule kept strong but is building networks, including CETA and the CPTPP, that still work if it weakens.

Key points

• Canada's trade with non-U.S. partners grew 17% in one year, worth $33 billion.
• Nearly one third of Canadian exports now go outside the U.S., the highest share in 40 years.
• The U.S. import ban on Canadian spirits, beer and cider took effect September 29.
• Canada-U.S. talks broke down in August, but Greer and LeBlanc still speak multiple times a week.
• Carney met Ursula von der Leyen in Strasbourg on September 16, opening the door to associate EU membership.
• The WTO has 166 members and runs on consensus, so reform is painfully slow, the video says.

Questions answered