Finance ministers talk trade issues
Manitoba minister cautions feds to “look before you leap”
OTTAWA — Finance ministers from across the Canadian federation were gathered Tuesday in the national capital to explore a number of challenges weighing on their economies — with a particular focus on the intensifying trade dispute with the United States.
The twice-yearly gathering of finance chiefs began just days before Canada is set to impose retaliatory tariffs on U.S. products. The federal government’s move, a tit-for-tat response to the Trump administration’s stinging tariffs on steel and aluminum imports, will take effect Sunday.
The federal, provincial and territorial governments have maintained a common front in dealing with U.S. President Donald Trump’s protectionist policies, which includes the difficult renegotiation of the North American Free Trade Agreement.
It’s important for Canada to stand its ground and to speak with one voice on the tariff dispute, said Manitoba Finance Minister Cameron Friesen. But when it comes to retaliatory measures, he’s urging the feds to proceed cautiously.
“I think that if I had a message for the federal government today it would be look before you leap in terms of retaliatory measures,” Friesen said prior to the meeting.
“We must make sure we are not unduly exposing those in our own jurisdictions to risks.”
Quebec Finance Minister Carlos Leitao said he’s keen to discuss possible fiscal measures governments can introduce to support businesses affected by the U.S. tariffs and to reassure firms that Canada is a safe and profitable place to invest.
“The key issue in this possible trade war is investment decisions,” Leitao said. “Firms are delaying or postponing investment decisions.”
The finance ministers were also scheduled to hear a presentation from David MacNaughton, Ottawa’s envoy in Washington, about the current state of the Canada-U. S. relationship
For weeks, Canada and the U.S. have been engaged in an increasingly ugly trade fight that deteriorated into a highly-unusual exchange of words between Trump and Prime Minister Justin Trudeau.
Trudeau has called the U.S. steel and aluminum tariffs “insulting” because they’ve been applied on a premise he rejects — that Canada poses a national security risk to the U.S.
The prime minister’s words earned him a personal rebuke from Trump and a pair of the president’s top advisers following the G7 summit in Quebec.
There are concerns Trump could retaliate against Ottawa’s countermeasures. The president has repeatedly warned he could apply tariffs on autos — which some fear could be a bigger danger for the Canadian economy.
The tariff dispute, along with the unknowns tied to the challenging NAFTA negotiations, have created significant uncertainty for Canadian businesses that, on its own, could have a painful economic impact.
The worry is that companies will choose to delay investments or simply make them elsewhere.
Ahead of Tuesday’s meeting, Canada’s Finance Minister Bill Morneau said the U.S.-Canada issues would be a central focus for the ministers.
“We’ll talk about the relationship between Canada and the United States — our current challenges around trade,” Morneau said.
The ministers were also scheduled to hear from Bank of Canada governor Stephen Poloz about the state of the economy. And to get a broader perspective, they will be joined at the meetings by chief financial officers from 10 leading Canadian organizations.
Morneau said the discussions would also focus on Canadian competitiveness.