WEBVTT - Canada's Trade Minister Talks Trump's Tariffs

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>Joining us now is Mary Young, Canadian Minister of Export Promotion,

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<v Speaker 2>International Trade and Economic Development. Minister.

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<v Speaker 1>Good to have you with us always you day, You're

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<v Speaker 1>always good to talk to you and new day and

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<v Speaker 1>new term.

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<v Speaker 2>This time it includes lumber. How are you looking at

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<v Speaker 2>the expanding list of tariffs.

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<v Speaker 3>Well, when the executive order first came into Canada very recently,

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<v Speaker 3>it included twenty five percent across the board on everything,

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<v Speaker 3>including well everything, and then ten percent on energy. What

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<v Speaker 3>we're pleased about is to be able to work with

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<v Speaker 3>the American administration to get a thirty.

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<v Speaker 1>Day pause on that.

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<v Speaker 3>And while at the same time working with the American administration,

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<v Speaker 3>we've been very clear terriffs are expensive for America. They

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<v Speaker 3>make no sense when seventy percent of what I export

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<v Speaker 3>in the United States, the United States takes adds value

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<v Speaker 3>to it and then helps them be more competitive with

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<v Speaker 3>their products. Adding a tariff just simply makes it more

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<v Speaker 3>expensive for Americans. Adding teriffs to Canadian exports simply means

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<v Speaker 3>that it's going to cost Americans more at the grocery store.

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<v Speaker 3>It's going to cost Americans more at the pumps. So

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<v Speaker 3>it makes no sense. We will continue to reiterate that message.

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<v Speaker 3>We've been very clear. We don't want to be here,

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<v Speaker 3>we don't want to initiate anything, but should there be

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<v Speaker 3>punishing tariffs on Canadian on Canada, we will respond accordingly.

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<v Speaker 3>But in the meantime, we are having conversations with the Americans,

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<v Speaker 3>as we do when you have a trading partner like

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<v Speaker 3>the one between Canada and the United States, where Canada

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<v Speaker 3>it's our largest trading partner, but we're pretty important to

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<v Speaker 3>the Americans as well. When I count thirty six American

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<v Speaker 3>states as my top customers, I sell more to them,

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<v Speaker 3>to those thirty six states than China, ben Japan, than

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<v Speaker 3>the United Kingdom and friends combined.

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<v Speaker 1>So we need to work on this together. That thirty

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<v Speaker 1>day pores.

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<v Speaker 2>You're in talks right now. How confident are you that

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<v Speaker 2>can be extended, that will be extended.

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<v Speaker 3>We are working very hard on that myself, the Prime Minister,

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<v Speaker 3>my cabinet colleagues. This is a really intentional effort to

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<v Speaker 3>work with the administration. One of the things that the

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<v Speaker 3>American that the American administration, including the President, have raised

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<v Speaker 3>concerns about, is how we can collaborate and do more

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<v Speaker 3>on boarder to make sure that at the border we

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<v Speaker 3>are indeed working more together. Despite Canada only having less

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<v Speaker 3>than one percent of fentannel going into the American Into America,

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<v Speaker 3>it too is just as a concern for Canadians. So

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<v Speaker 3>collaborating together to make sure that we are doing more

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<v Speaker 3>on our border is what we are doing. And we're

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<v Speaker 3>confident that that work is not only making progress, but

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<v Speaker 3>that we're doing that with the Americans. And this is

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<v Speaker 3>the testament of the Canadian American relationship as well, the

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<v Speaker 3>ability to talk through and work through what are sometimes

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<v Speaker 3>really tough issues. So we're committed to doing that on

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<v Speaker 3>our end.

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<v Speaker 2>You talked about how Canada exports more to the US

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<v Speaker 2>than any other country. We're talking about almost eighty percent

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<v Speaker 2>of your exports going to the US despite a trade

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<v Speaker 2>agreement with the likes of the EU. Why has it

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<v Speaker 2>been so difficult for Canada to diversifies trade.

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<v Speaker 3>Well, I always say, as the Trade Minister, negotiating trade

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<v Speaker 3>agreements are about it's like building a bridge.

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<v Speaker 1>But what you want is you need.

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<v Speaker 3>Your businesses to walk across that bridge. And I think

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<v Speaker 3>businesses really are reflecting on the importance of diversification. I

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<v Speaker 3>think that the meaning of diversification has a more greater significance.

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<v Speaker 1>It's why I'm here in Singapore.

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<v Speaker 3>I just led a trade mission to Australia, some two

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<v Speaker 3>hundred over two hundred Canadians that are here looking to

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<v Speaker 3>pursue opportunities in this market. Here in the Indo Pacific

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<v Speaker 3>and in Singapore. Who's a partner in the CPTPP. We

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<v Speaker 3>have been doing business and have seen our trade increase

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<v Speaker 3>by over twenty percent since it's coming in force into

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<v Speaker 3>twenty eighteen.

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<v Speaker 1>I've taken hundreds and hundreds.

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<v Speaker 3>Of businesses on trade missions, whether it is here in

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<v Speaker 3>Singapore or to Japan, or to Korea, or to Malaysia,

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<v Speaker 3>to Indonesia. We just wrapped up a free trade agreement

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<v Speaker 3>with Indonesia. But I think that what the Canadian government

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<v Speaker 3>has been doing is really building out that deliberate infrastructure

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<v Speaker 3>to help Canadian companies look at markets like these ones.

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<v Speaker 3>This is a really important place for Canada. We launched

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<v Speaker 3>our Indo Pacific Strategy at the end of twenty twenty two,

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<v Speaker 3>back by two point three billion dollar investment over five

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<v Speaker 3>years to do exactly that, grow our businesses, create those partnerships.

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<v Speaker 3>Yesterday here in Singapore. I announced seven point three billion

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<v Speaker 3>dollars to build a Canadian trade gateway for nuclear energy.

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<v Speaker 3>This is really important because in the region, in all

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<v Speaker 3>of these discussions I've had with partners, energy security is

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<v Speaker 3>an issue. These economies are growing and they want to

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<v Speaker 3>be able to grow with reliable energy in order to

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<v Speaker 3>grow their businesses, to power their cities and their communities.

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<v Speaker 3>So we want to be a part of that solution.

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<v Speaker 3>So these are the kinds of things that we're doing

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<v Speaker 3>as a government, but we're doing it in partnership with

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<v Speaker 3>businesses that I would say, and I keep saying to businesses,

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<v Speaker 3>you've got to.

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<v Speaker 1>Show up, You've got to be here. Do these do these.

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<v Speaker 3>Transactions because they actually will be great for our trading

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<v Speaker 3>partners as well as for US.

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<v Speaker 2>Minister. We keep getting headlines from Trump, and just today

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<v Speaker 2>we heard from how he is willing to perhaps rethink

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<v Speaker 2>that trade deal with China. He says it is a

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<v Speaker 2>possibility for a new trade agreement with China. It does

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<v Speaker 2>seem he's approaching China in a very conciliatory way. Instead

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<v Speaker 2>of sixty percent terrors, is ten percent terrors. Whereas when

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<v Speaker 2>it comes to a trading partner like Canada, he was

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<v Speaker 2>willing to go full force with twenty five percent. Is

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<v Speaker 2>there a hands a sense perhaps that Trump is trading

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<v Speaker 2>China in a better way than he is trading Canada.

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<v Speaker 3>Well, I can't speak for the president for President Trump,

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<v Speaker 3>but what I would say for Canada is that you know, Canada,

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<v Speaker 3>you know, has everything it needs to be successful in

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<v Speaker 3>today's global economy and into the future. The United States

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<v Speaker 3>is our largest trading partner. We will continue to work

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<v Speaker 3>with the United States because it's.

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<v Speaker 1>Good for Americans.

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<v Speaker 3>I mean, millions and millions of jobs are dependent on

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<v Speaker 3>America's trade with Canada. The inputs that we send to

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<v Speaker 3>the United States actually create and have built these resilient

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<v Speaker 3>supply chains that are good, you know, that are good

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<v Speaker 3>for businesses, that are good for communities.

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<v Speaker 1>I think what we need to keep doing is to

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<v Speaker 1>do this work.

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<v Speaker 3>But Canada also has, through its current trade networks, access

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<v Speaker 3>to sixty five percent of the world's economy through trade

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<v Speaker 3>agreements like with the European Union here through the CPTPP

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<v Speaker 3>with countries like Singapore and Malaysia and Australia and New

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<v Speaker 3>Zealand and Vietnam and so forth. But also a math

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<v Speaker 3>the negotiating table with as Yen as a block. I've

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<v Speaker 3>just concluded agreement, an agreement with Indonesia, really excellent trade

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<v Speaker 3>agreement there, launched exploratory dialogues with Philippines.

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<v Speaker 1>So I think the work.

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<v Speaker 3>We need to do and we need to keep doing,

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<v Speaker 3>is make sure that we continue to strengthen North America

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<v Speaker 3>on the one hand, but also pursue these opportunities. And

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<v Speaker 3>in candad that I often say to people, we are

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<v Speaker 3>the best traders because around the world, because we come

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<v Speaker 3>from around the world. So these deep people to people ties,

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<v Speaker 3>I think is also an advantage.

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<v Speaker 2>Is there a need for you to have a new

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<v Speaker 2>trade strategy under the Trump administration? I mean concession stone work.

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<v Speaker 2>We saw that with India and Ted for Ted is

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<v Speaker 2>not working either. Is there a way of relooking at

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<v Speaker 2>your trade strategy?

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<v Speaker 3>Well, I let's remember that the agreement we have today

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<v Speaker 3>with the United States, which we renegotiated with the United States,

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<v Speaker 3>was actually done by President Trump, and he touted this

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<v Speaker 3>to be an excellent agreement. It took us time to

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<v Speaker 3>do that, and there were issues that we had to

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<v Speaker 3>work through.

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<v Speaker 1>But we did work through them.

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<v Speaker 3>We negotiated across the table and in President Trump's trade

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<v Speaker 3>memoranda that he issued to the Commerce Secretary and to

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<v Speaker 3>the USDR was to take a look at the range

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<v Speaker 3>of trade agreements you know, that the United States has

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<v Speaker 3>with the world, including in Canada, and including the work

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<v Speaker 3>that we are the work that is done between Canada,

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<v Speaker 3>US and Mexico. I'm looking forward to, you know, to

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<v Speaker 3>understanding what that analysis will you know, will will come

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<v Speaker 3>forward with. But ultimately, I think that at the end

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<v Speaker 3>of the day, it's about finding the win and the

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<v Speaker 3>win and the synergies that make America straw, the synergies

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<v Speaker 3>that make Canada straw, the synergies that make North America strong,

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<v Speaker 3>and and I think that's the uh, we that's the

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<v Speaker 3>approach we've taken. We're gonna have to, you know, do that,

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<v Speaker 3>take that approach and then adapt as we need.

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<v Speaker 2>Mind, the wind come from a multi level response instead

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<v Speaker 2>of Canada just responding on its own. Should that be uh,

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<v Speaker 2>you know, a global response, let by perhaps Canada asially

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<v Speaker 2>even Europe. Should that be a multi level approach to

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<v Speaker 2>responding to Trump's terraces.

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<v Speaker 3>Well, I've certainly, you know, been talking to my colleagues

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<v Speaker 3>around the globe, particularly those who we have trade agreements

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<v Speaker 3>with and those partners who who really stand up for

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<v Speaker 3>the rules based trading system. I was in Europe just

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<v Speaker 3>a little over. I'm losing track of time. I think

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<v Speaker 3>it's a little over a week or maybe two weeks ago.

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<v Speaker 3>I was at the World Trade Organization. I'm here, of course,

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<v Speaker 3>in Singapore, our CPTPP partner. I was just in Australia

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<v Speaker 3>and I'm on my way to Brunei. And I think

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<v Speaker 3>the one thing that is consistent with all of us

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<v Speaker 3>because in response to our businesses and the investors, they

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<v Speaker 3>are looking for governments and for those of us who

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<v Speaker 3>have negotiated these agreements to provide and the predictability that

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<v Speaker 3>they need. So everyone agrees that standing up for a

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<v Speaker 3>rules based international order, particularly around trade, is something that

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<v Speaker 3>we are going to need to work on together. Each

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<v Speaker 3>country will do what they will do with respect to

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<v Speaker 3>unique responses, but I do think that there is agreement

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<v Speaker 3>that the rules based international order, particularly around rules based trade,

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<v Speaker 3>is something that we must stand up for and continue

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<v Speaker 3>to work very hard at defending with.

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<v Speaker 2>TRUM reshaping the Global Trade Book. I'm just wondering, from

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<v Speaker 2>Canada's perspective, is China now a more important trading partner.

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<v Speaker 2>Is India now a more important trading pot.

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<v Speaker 3>Well, our Indo Pacific strategy had set out and this

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<v Speaker 3>is now well over. You know, at the end of

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<v Speaker 3>twenty twenty two, we set out a strategy that envisagedes

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<v Speaker 3>the importance of this region in particular, that also includes

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<v Speaker 3>how Canada would work with China, and there you know,

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<v Speaker 3>we refer to it in the.

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<v Speaker 1>Strategies the Four Seas.

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<v Speaker 3>There will be opportunities where we should absolutely be collaborating together.

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<v Speaker 3>You think about climate change and how we can build

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<v Speaker 3>out solutions, including economic solutions that actually will fight climate change.

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<v Speaker 3>There will be issues where we're going to have to

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<v Speaker 3>challenge China because the values that are important to Canadians

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<v Speaker 3>are such that we need to do that. We can

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<v Speaker 3>also compete, I mean, take a look at AI, take

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<v Speaker 3>a look at what Canada is doing in the critical

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<v Speaker 3>mineral space, take a look at what Canada is doing

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<v Speaker 3>around the battery ecosystem with respect to batteries around for

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<v Speaker 3>electric vehicles, and how we're attracting investments from around the

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<v Speaker 3>globe to do this in Canada. So we can certainly compete,

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<v Speaker 3>and then we need to co exists. So the approach

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<v Speaker 3>that we have taken in the Inno Pacific strategy I

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<v Speaker 3>think still holds today.

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<v Speaker 2>All Right, Menissa, thank you so much for joining us.

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<v Speaker 2>Perfect day to have you on the show. Mary and

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<v Speaker 2>Canadian Minister of Export Promotion, International Trade and Economic Development,