Canada is under attack economically. The timing is delicate as Canada is undergoing a critical change of leadership. Change is good but changing horse in the midst of a battle requires wise planning and smart execution. Survival is not optional. What is optional is how to respondand counter attack. Knowing more about US reasons and objectives should help us better prepare our response.
Here is four serious US challenges that we can use to help them and indirectly help ourselves for a win-win outcome.
- The Economy:
The US budget deficit is $2 Trillion or 7% of GDP. The US must grow its revenues (Tariffs Initiative) without tax increase and cut expenditures (DOGE Initiative). Canada can demonstrate that we can help but only if we work together.
The US Trade Deficit of $100B is made up 75% with China, Europe and Mexico. Canada is less than 5% so the clear priority is not Canada. Furthermore, without the energy component, the US-Canada trade deficit is actually a US surplus. We can rapidly build infrastructure East and West and diversify our energy export. We can simultaneously help balance trade with the US and keep our European friends warm in winter and cool in summer. An added bonus: more Canadians work and GDP gets a boost.
- International:
The US and the USSR shared world leadership after WWII until December 1991 when the USSR collapsed. The US became the undisputed Global “Policeman“. With 700 military bases and 165’000 troops overseas, US spends a gigantic $1 Trillion on its military. US can neither sustain this level of spending nor retract from its world leadership role. Working together with the US and bringing the Europeans along is crucial for the free world. The US needs us. We should welcome team work and reject dependency on anyone.
- Border security, immigration, and drugs:
Reliable estimates suggest that 300,000 to 600,000 people live in Canada without valid documents and more than 50’000 Canadians died with opioid-related deaths. Do we need our neighbour to threaten us to fix that? Are these numbers not enough for us to take decisive actions. Let’s get the job done together by securing our common borders and stopping drug trafficking.
- Resources: A US challenge ... an opportunity for Canada:
Canada has incredible natural resources that the US needs. We are leader in potash production, the largest fertilizer producer (crucial for US farmers), a global producer of diamonds, uranium, zinc, nickel, asbestos, sulfur, and titanium, in addition to energy. Best of all, Canada is a leader in renewable fresh water. These resources are needed by our neighbour for running a strong economy. Water availability = manufacturing availability = job availability. This is not rocket science!
The US would be better off with Canada as a reliable partner and a trusted friend.
W 469