A bully reaps his harvest of resentment

Regardless of what the U.S. president says, relations between the U.S. and Canada were fundamentally altered for the worse by the protracted negotiations to revise the NAFTA treaty (now dubbed by President Donald Trump the U.S.-Mexico-Canada Trade Agreement).

Using a combination of negotiating ploys familiar to operators in the New York real estate business, Trump set a new low for bullying tactics towards a trade partner.

First, Trump did not understand basic data concerning NAFTA, a treaty he termed the worst in U.S. history. While on goods trade Canada did enjoy a surplus, on services we lagged far behind the U.S. (All those snowbirds fleeing to the southern U.S. from Canada’s winters push the U.S., more often than not, into an overall surplus. We should go to Mexico or Vancouver Island in future.)

Second, when Canada did not immediately capitulate to his outrageous demands, Trump denigrated his opponent, attacking our prime minister in public. He imposed tariffs on our exports to the U.S. on the totally spurious grounds of national security. Canada has the closest defence agreement with the U.S. of any nation as partners in the North American Aerospace Defence (NORAD).

We had, until 9/11, the longest undefended border in the world — now made noticeably thicker by the incessant aggrandizement of the U.S. border patrol.

Third, the chief U.S. negotiator, Robert Lighthizer failed to negotiate in good faith from the beginning, simply parroting the absurd and unjustifiable demands of the president.

Lighthizer set unreasonable deadlines for concluding negotiations, and echoed the threat of tariffs that, as Trump said, gloating, would “ruin the Canadian economy.” He treated his counterparty disrespectfully, dealing behind her back when it suited him.

Perhaps most absurd were remarks by a White House official saying “there is a special place in hell” for Justin Trudeau for daring to say at a news conference after June’s G-7 meeting that Canada would not be pushed around.

A double standard was evident. Trump and the U.S. could say whatever they wanted, including disseminating lies about trade numbers. But, even the mildest of Canadian rebuttal was not acceptable, nor was imposing retaliatory tariffs on U.S. goods coming into Canada (a standard response).

I long believed that the U.S understood that its interests were best served by maintaining good relations with Canada. But, the persistent lying and smearing of Canada during the negotiations has led to an understanding on Canada’s part that the U.S. can no longer be trusted to keep its word. Given the countless ways in which our two countries have interacted for well over a century, this requires a fundamental readjustment in dealings - both official and private - with our neighbours to the south.

The most important adjustment economically for Canada will be achieving significant reductions in our reliance on selling into the U.S. We have long spoken the language of trade diversification; now we must walk the walk.

On a host of other official interfaces including the Joint International Border Commission, the operation of the St. Lawrence Seaway, North American air space, and the Columbia River Treaty (to mention but a few), negotiation of any issues will be protracted and hostile unless Canada simply agrees to the US positions. The ever-diminishing reserves of goodwill most Canadians hold towards the US will eventually be exhausted.

This surge in acrimony towards the U.S. causes me personal concern.

I was born in Canada to American parents and spent half of my first 30 years living in both countries. I have long admired the U.S. for the leadership role it played in developing a rules-based boom in international trade and for its brilliant achievements in the arts and sciences (even though I was and remain cognizant of its many social and political problems).

Regrettably I’m no longer an admirer. Like many of my acquaintance, I won’t be visiting south of border until I see a positive change and I won’t hold my breath waiting.

David Bond is a retired bank economist who resides in Kelowna.