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Donald Trump is in the White House now.
And with election to America’s highest office, there would be a big change in the status quo as far as trade is concerned. In his inauguration speech, the President indicated that there would follow the “America First” and “American First” policy about which he spoke so much in the campaign.
This means that both of America’s neighbours, Canada and Mexico, will need to readjust their positions to retain the competitive advantage or, at least, try to make the best out of a changing situation. If both states are unable to play their cards right, they will need to succumb to President who is truly on a mission to make America great again.
The biggest shake-up in the existing US-Canada trade relations can be caused by Trump’s views on the North American Free Trade Agreement. The President believes that the agreement has, for years, caused America to be in a disadvantaged position when it comes to regional competition.
One of the most significant pledges he made this Sunday was to conduct meetings with Mexico’s President Enrique Pena Nieto and Canada’s Prime Minister Justin Trudeau in order to renegotiate the North America Free Trade Agreement.
As soon as President Trump made his announcement, the Prime Minister and his cabinet decided to take a three-day retreat in Calgary to prepare themselves for the inevitable meeting between the President and the Prime Minister.
And they need all the preparation they can. Trump is a Political heavy weight who comes with an additional burden with the wishes of the American public on his shoulders. Trudeau and his cabinet needs to step up to the task to leading the country in a Trumpian era. Otherwise Canada will be left far behind in the field of trade.
And there’s no way we can recover this time.