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Kuangyi (Guagua) Bo
@BoKuangyi
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加入 August 2013
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On the surface, matching tariffs dollar for dollar looks tough: 3/4 of everything Canada exports goes to the US, and those goods account for about 1/5 of Canadian economy. The same trade is only worth about 1% of America’s. But Canada is a great middle power whose advantage lies in having flexible, polyamorous relations. China can pick up the slack and blunt the bite of those tariffs. It’s been going in that direction - the new Pacific pipeline, ginger steps on Chinese EVs, more canola exports etc. However, opportunistic volumes are not true diversification. With the weight of experience, Canada needs a supply-side shift that treats China as a long-term partner. Such structural change is hard and politically cumbersome. It still has to be done. Start by scrapping the EV restrictions which is largely protectionist of American interests. Build Chinese auto factories instead. Take in Chinese machinery and parts (which are the top US-Canada trade), expand Pacific routes, and buy Great Wall wine. Today is the chance to discuss a free-ish trade agreement. Quit the virtue signalling that always ends up in fruitless bickering. What actually matters is mutual prosperity.
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