If President Donald Trump takes any pride in the United States of America, he has a funny way of showing it. Did he run for the presidency as a joke or to get even? Maybe he was tired of being considered a joke? In his ignorance, Trump is giving the bird (as only a New Yorker can) to America’s two best customers and friends. You might think that is stupid. I might think it is stupid. What it can be is also a long-delayed reality for America’s friends.
Trump is trying to bully America’s two best customers over the North American Free Trade Agreement (NAFTA). The two countries combine to buy more than a third of America’s exports. If Trump thinks this is a bad deal, nobody has explained to him what it means in terms of the balance of payments. He is setting a phenomenal record as the first person in the world to gamble US$500 billion. And that is just the goods sold each year.
He insults the intelligence of Canadians. To Mexicans, he adds racial slurs. It will take a long time for Americans to repair the harm Trump is doing in race relations with many peoples.
Trump seems to be oblivious to the trade deal Canada has already arranged with the European Union, the ongoing relationship with the United Kingdom and the British Commonwealth and the ease with which Canada can make deals in Asia.
And if Trump starts to play fast and loose with the automotive sector, he will find himself in more trouble with the automobile companies and their unions than he has ever expected. It would be very interesting to know what those companies intend to do if they are faced with drawing back all manufacturing to the U.S. Would Americans stand back and be quiet as Trump bankrupts General Motors?
But for Canadians, this is not only a wake-up call but a new-found freedom. Up-front, Canada can save a billion dollars in not twinning that bridge at Detroit. Niagara Falls, Ontario can have its own outlet malls for price cutting on European and Canadian goods that Americans cannot resist. The best price winter holidays for Canadians will be in the south of France and Spain and for a little more, there are the Greek Islands.
While Canada could take a hit as hard as 2.5 per cent of gross domestic product in the first year without NAFTA, there would be a long line of American manufacturers wanting to bring some of their manufacturing plants back to Canada to take advantage of relations with markets in Asia and Europe. Trump can have his introverted Buy America, Canadians can sell to the world.
Copyright 2017 © Peter Lowry
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