With the threat of punishing tariffs on pause but still hovering over the Canadian economy, Prime Minister Justin Trudeau announced the government will host a Canada-U.S. Economic Summit later this week, aimed at increasing investment and easing internal trade barriers.
The event will be held in Toronto on Friday and will hear from Canadian leaders in trade, business, public policy and organized labour, according to a news release from the Prime Minister’s Office.
“This is an important opportunity to build a long-term prosperity agenda for Canada,” Trudeau said in the statement on Wednesday.
“One that is resilient, that breaks down barriers between provinces and territories, and that is diversified in global trade.”
Earlier this week, U.S. President Donald Trump announced he was shelving his promise to impose 25 per cent tariffs on Canadian goods for at least a month. The reprieve came following an afternoon call with Trudeau on Monday, just hours before the tariffs were scheduled to come into force, likely devastating the Canadian economy.
Trudeau said Friday’s summit is meant to “explore ways to grow Canada’s economy, make it easier to build and trade within the country, diversify export markets and rejuvenate productivity.”
On Wednesday, Trudeau held a virtual call with the premiers, now a weekly meeting amid heightened Canada-U.S. tensions. Finance Minister Dominic LeBlanc, Internal Trade Minister Anita Anand and Canada’s Ambassador to the United States Kirsten Hillman, were also on the call, according to a readout.
Trudeau gave an update on his call with Trump and the group discussed forging ahead with plans to remove internal trade barriers, according to the statement.
Internal trade talks heating up
Talk of improving trade between the provinces is not new, but the conversation has once again reared its head in the aftermath of Trump’s tariff threat.
Industry players have long complained that it’s easier to do business with other countries than within Canada, largely due to regulatory barriers including differences in licensing requirements.
Last week the committee on internal trade, which includes Anand, premiers and provincial ministers, met and agreed to improve labour mobility and adopt the same requirements for goods and services.
“We are at a pivotal moment in the history of our country,” Anand said Wednesday during a news conference in Halifax.
Asked during the news conference whether “interprovincial trade barriers [could] be dealt with, wiped away in 30 days?” the minister said the short answer is “yes.”
The minister has said removing existing barriers could lower prices by up to 15 per cent and add up to $200 billion to the domestic economy.
Earlier this week, Conservative Leader Pierre Poilievre called Trump’s threats a “wake up call” and promised if elected to implement a plan to boost internal trade in Canada.
The federal government is expected to appoint a ‘fentanyl czar’ as part of a deal to stave off U.S. President Donald Trump’s tariffs for at least 30 days. The public safety minister says the role will likely be a liaison with police, the justice system and other countries.
Trump has suggested he’s still looking for some sort of “final economic deal” with Canada down the line.
The president has rattled off a number of reasons for why he thinks tariffs are justified against Canada, his country’s longtime ally. He has said repeatedly he wants to make Canada the 51st state and routinely raises concerns with what he sees as security threats at the northern border, mainly the flow of illegal fentanyl and migration into the U.S.
Trudeau said he pitched Trump an updated border strategy during their Monday call, reminding the president that Canada is moving ahead with its previously announced $1.3-billion border security plan, which includes reinforcing the nearly 9,000-kilometre border with new helicopters, technology and personnel.
According to a statement, Trudeau did commit to three new measures on the call: creating a “fentanyl czar“; promising to list Mexican cartels as terrorists under Canadian law; and establishing a new $200-million intelligence directive on organized crime and fentanyl.
A number of Trudeau cabinet ministers are in Washington this week to continue to pitch industry representatives and Republican lawmakers on Canada’s plan.
The country’s premiers are heading to the U.S. capital next to continue to advocate against tariffs.
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