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Email Content: Poultry Industry News, Comments and more by Simon M. Shane

Canada in a Precarious Trade Situation


Canada is linked to the U.S. as the largest trade partner in agricultural and industrial goods. The current trade dispute between the U.S. and China has influenced Canada. Issues include the adoption of Huawei 5G technology, which the U.S. disfavors and the detention of CFO Ming Wanzhou, daughter of the founder of Huawei at the request of the U.S. Robert Fay, Director of Global Economy at the Center for International Governance Innovation in Canada considers that the U.S.-China trade war “makes things more difficult for Canadian policy makers”.

A further issue which may become significant is the fact that Hong Kong self-determination and 18 consecutive weeks of protest may result in intervention by the government of China. This would affect 300,000 Canadian citizens currently resident in Hong Kong.

Paul Evans, a professor at the University of British Columbia is critical of current U.S. policy and considers that U.S. action on Ming and Huawei 5G is detrimental to Canadian interests.

The current political uncertainty in Canada should be resolved in the October 2019 election with the possibility of a change in government. The USMCA previously ratified by Mexico has yet to be addressed by the legislatures of Canada and the U.S. Canada will in all probability not move unless the U.S. Congress takes positive action. Threats to withdraw from the existing NAFTA which has functioned for over 25 years may emerge as a lever to induce the Parliament of Canada and the U.S. Congress to act in a politically-charged environment heading into the 2020 election.

Finalization of USMCA would obviously be beneficial to the agricultural sector in both nations and will provide greater stability necessary for continued capital investment.

Copyright 2019 Simon M. Shane