Trump taxes push Canada towards rapprochement with India and China
While American President Donald Trump has interrupted trade negotiations with Canada, Canadian Prime Minister Mark Carney wants his country to move closer to India and China. For what reasons?
Mark Carney has pledged to double his country's trade over the next decade. It therefore needs to diversify its economic partnerships. We have already observed a warming of relations between the head of the Canadian executive and his Indian counterpart, Narendra Modi, on the sidelines of the recent G20 in Johannesburg, South Africa.
Renew ties with the fifth world power
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What opportunities is he talking about? Vegetables, fuel, wood pulp and fertilizers travel from Canada to India. Pharmaceutical products, machinery, electronics, precious stones, travel in the opposite direction between India and Canada. Trade between two countries currently works to Canada's advantage thanks to exports of services. Ottawa also wants to sustain India's supply of uranium. The objective is to double its bilateral trade with New Delhi to reach 50 billion US dollars by 2030.
Choose your strategy wisely with China
To offset the consequences of Trump taxes on its economy, Ottawa also wants to get closer to China. But first we will have to put an end to the trade war raging between Ottawa and Beijing. Remove the 100% tariff on Chinese electric vehicles. A measure that the federal government is currently considering. China, for its part, will have to lift taxes imposed on canola, used to make oil, Canadian seafood and pork.
Economic links that will also need to be extended to research and development, industrial production and services. China is already Canada's second largest trading partner. But only 5% of Canadian exports go to China, while nearly 75% are destined for the United States. Replacing Washington will therefore not be easy. Especially since concerns persist regarding China regarding human rights and the risks of cyber interference.
