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HAT Forum - The Precarity of the Canada/US Relationship

This presentation will be a Zoom Meeting:
https://us06web.zoom.us/j/971381033

The Precarity of the Canada/US Relationship:
Presented by Karen Lynn

It wasn’t always sunshine and lollypops between the USA & Canada

Canada and U.S. saga: a timeline www.cbc.ca/canadaus/timeline.html  This timeline traces the major events and difficulties between our two countries up to the year 2000.

Personally, my concern for this subject began in the summer of 1956. I was 12 years old, basking on a beach in Cape Cod, Massachusetts where my family was vacationing. My new friends were playing nearby and most of the adults were engrossed in conversation. I was sitting beside the father of a friend, a school principal. He turned to me and said:

“You know, the United States could easily go up to Canada and take over if it wanted to.”

I said nothing, but took the warning seriously.

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The Canadian Encyclopedia explains…

“Canada's nationhood was in many ways a by-product of the American Revolution, when the victory of the Thirteen Colonies led to the exodus of Loyalist Americans to  British North America…Many brought with them a deep distrust of the United States and its political system.”                                                    

“A crushing defeat for the British in the War of 1812, the sacking of York [Toronto] began on the morning of 27 April 1813. At dawn, a flotilla of 16 American ships … made its way to the capital of Upper Canada, York. … The American force of approximately 1,700 men easily assumed control.”    

In the end, the border did not change. We became friends and crossed the border for many years, even without a passport.                                                        

“So, after “Mr. Madison’s War”, things got better between the USA and Canada. Trade relations flourished between our countries. Until now.

Would they hide me? 

 And finally, please watch Scott Galloway on Markets, Musk, and Trump’s “Weapons of Mass Distraction” | Amanpour and Company. The entire interesting interview is about 17 minutes, but Galloway sums up the history of the relationship between the USA and Canada, hitherto, between 4:44 and 6:38.

How did we get here? (with a little help from AI)

1.       Tariffs. Trump claims that tariffs on Canadian goods are his responses to illegal immigration and drug trafficking. He also says that tariffs encourage manufacturers to locate to the U.S. and boost domestic employment. However, data indicates that in 2024, U.S. Customs agents seized 43 pounds of fentanyl at the Canadian border, compared to 21,100 pounds at the Mexican border, less than one percent of all fentanyl seized by U.S. border agents.

So, what are the real reasons behind the Trump tariffs?

2.       Critics argue that such tariffs function as a form of taxation that raises prices and reduces purchasing power without achieving meaningful benefits.

Is this just idle speculation or is it true?  

3.       Some suggested strategies include:

a)     Diversify Export Markets: Reducing reliance on the U.S. market by exploring and expanding into alternative international markets can help Canadian businesses mitigate the effects of U.S. tariffs.

b)    Strengthen Domestic Consumption: Encouraging Canadians to prioritize locally produced goods can offset reduced exports. Initiatives like the widespread "Buy Canadian" movement have gained momentum, with businesses labeling products to highlight domestic origin, and consumers actively seeking Canadian-made items.

c)     Adjust Supply Chains: Reevaluating and modifying supply chains to source inputs domestically or from countries not subject to U.S. tariffs can reduce exposure. This approach has been considered in industries like coffee, where companies are exploring alternative sourcing to navigate trade uncertainties.

d)    Advocate for Policy Support: Engaging with the Canadian government to seek financial assistance, subsidies, or tax relief can help industries adversely affected by the tariffs. Such support can alleviate immediate economic pressures and aid in long-term adjustments.

e)     Enhance Competitiveness: Investing in innovation, technology, and workforce development can improve the global competitiveness of Canadian products, making them more attractive in both domestic and international markets. 

4.       It’s difficult to predict what will happen over the next six months or year, I know. Would anyone like to speculate?  

Will the American people rise up and intervene?
What would you advise the Canadian government and people to do?
If you were Mark Carney, what might you do?

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