Trudeau should ‘not be enormously worried’ about Trump’s plan to renegotiate NAFTA, senior adviser says
Donald Trump’s chief economic adviser says Canada should not be “enormously worried” about the newly minted president’s move to renegotiate the North American Free Trade Agreement, despite the possibility of a border tax on energy imports.
Prime Minister Justin Trudeau is holding a three-day retreat in Calgary with his inner circle to map out strategy on trade relations with the new U.S. administration.
‘There may be some modifications, but basically, things should go well for Canada.’
– Stephen Schwarzman
Stephen Schwarzman, who is the chief executive of the U.S. investment firm Blackstone Group and was appointed in December to head Trump’s Strategic and Policy Forum, met with Trudeau early Monday in Calgary and told him Canada is not in the president’s crosshairs, as trade between the two countries is largely balanced.
“One of the important things is the unusually positive view that’s held of Canada,” he said.
“Canada has been a great partner for the U.S. for as long as anybody can remember. There may be some modifications, but basically, things should go well for Canada … it’s a model for how trade relations should be, it’s a positive sum game. Canada is well-positioned.”
Canada’s ambassador to the U.S. said Sunday there is a concern the country could face “collateral damage” from Trump’s trade policy. Schwarzman told reporters the chances of that sort of retribution are low, but did acknowledge the country’s leaders have considered applying tariffs to energy imports.
“One of the things the U.S. is looking at is a potential border tax, which, I think if you’re in NAFTA is a good place to be,” Schwarzman said. “I think that will be one of the issues, ultimately, to be discussed.”
Kushner planning trip to Calgary
Canada’s natural resources minister, Jim Carr, said earlier Monday he has heard nothing of the Trump administration imposing a “border tax” on Canada’s energy exports, something that has been floated by Republican House Speaker Paul Ryan in the past as part of his plan to overhaul the U.S. tax regime.
The tax would make Canadian oil and gas more expensive for U.S. refineries to buy, and there are serious concerns from some in Alberta’s oilpatch that it could lead to an exodus of investment dollars to projects south of the border.
Trump’s son-in-law Jared Kushner is expected to travel to Calgary on Tuesday to speak with members of the Liberal cabinet.
Reuters first reported the Kushner visit, citing a source involved in the matter.
U.S. President Donald Trump chats with son-in-law Jared Kushner after his election night acceptance speech. Kushner is expected in Calgary Tuesday. (Mark Wilson/Getty Images)
A senior source, speaking to CBC News on condition of anonymity, confirmed plans for the visit, but said later that the details were still being worked out.
”I think that underlines the high importance of the relationship, not just to Canada, but to the United States,” Public Safety Minister Ralph Goodale said of Kushner’s visit while noting the logistics of his visit are still in the works. “If that opportunity arises, I think we’ll be very happy to have him.”
Kushner, who is married to Trump’s eldest daughter, Ivanka, is a trusted adviser of the president and was deeply involved in his campaign for the country’s highest office.
Economies ‘very much integrated’
Carr said meetings with representatives in the U.S. Congress, senators and members of the new president’s transition team have so far been positive despite some of the protectionist rhetoric emanating from Trump. Carr said many have been receptive of Canada’s messaging about the importance of the economic relationship.
“I think people realize that the economy between Canada and the United States is very much integrated, and that when we create important jobs it benefits both sides of the border,” Carr said.
Chrystia Freeland, who was recently promoted to foreign affairs minister after Stéphane Dion was shuffled out, said the government has been reaching out to create personal relationships with those in the fledgling Trump administration, including with the likes of Schwarzman, whom she called her “long-time friend.”
The federal cabinet is scheduled to hear from Dominic Barton, managing director of the global consulting giant McKinsey and chair of Finance Minister Bill Morneau’s economic advisory panel, later this afternoon.
Trump, meeting with members of his cabinet and high-profile executives on Monday, repeated his plans to cut the U.S. corporate tax rate and to go after companies that move factories abroad. Trump signed an executive order Monday to pull the U.S. out of the Trans-Pacific Partnership trade deal, and was also expected to formally signal his intent to seek a renegotiation of NAFTA.
The 12-nation TPP, which includes Canada, was signed last year and was awaiting ratification, but it won’t take effect if either the U.S. or Japan fails to ratify it.
Article source: http://www.cbc.ca/news/politics/trump-kushner-canada-trade-1.3947947?cmp=rss