Latest / INSIGHT TODAY / Latest Canada-U.S. trade developments 'very positive'

Transcript

Latest Canada-U.S. trade developments 'very positive' · INSIGHT TODAY

• 0:00
  Speaker 1: CBC News has confirmed that the federal government is discussing
• 0:03
  Speaker 1: trade concessions with Washington in return for some tariff relief.
• 0:09
  Speaker 1: Sources tell us that Ottawa is preparing to meet some
• 0:12
  Speaker 1: US trade demands, including potentially ending bands on American alcohol sales.
• 0:17
  Speaker 1: A spokesperson for the Canada US Trade Minister says Dominic LeBlanc.
• 0:21
  Speaker 1: The minister is leaving Washington today after a visit this week,
• 0:25
  Speaker 1: and they told CBC that Canada's chief trade negotiator, Janis Sharett,
• 0:29
  Speaker 1: will remain in the US capital over the weekend. So
• 0:33
  Speaker 1: we do want to stay on this breaking news story
• 0:35
  Speaker 1: for you, and for that we're going to bring in
• 0:36
  Speaker 1: Dennis Darby. He is the president of Canadian Manufacturers and
• 0:40
  Speaker 1: Exporters and also a member of the Advisory Committee on
• 0:44
  Speaker 1: Canada US Economic Relations. Thank you so much for making
• 0:46
  Speaker 1: time for us today.
• 0:48
  Speaker 2: Nursing.
• 0:49
  Speaker 1: Okay, So we're talking about the potential here for making
• 0:52
  Speaker 1: concessions in order to get some tariff relief ahead of
• 0:56
  Speaker 1: August nineteenth. Is this the best approach at this point?
• 1:00
  Speaker 3: Well, first, let me start that Canada and the US
• 1:03
  Speaker 3: are talking and having substantial talks with respect.
• 1:07
  Speaker 2: To coming to an agreement is very positive.
• 1:10
  Speaker 3: You have to from that point of view alone, because
• 1:12
  Speaker 3: up till now it has been you know, it has
• 1:15
  Speaker 3: not been as intense. And as you mentioned, we know
• 1:18
  Speaker 3: the trade negotiator and our team are in Washington, so
• 1:21
  Speaker 3: that's good. Manufacturers need certainty, and of course they're the
• 1:25
  Speaker 3: ones mostly affected by the impending tariffs, but also by
• 1:29
  Speaker 3: the tariffs that do exist under section two thirty two.
• 1:32
  Speaker 1: So in terms of reactions so far from those within
• 1:36
  Speaker 1: the circles that you speak to when we're talking about manufacturing,
• 1:40
  Speaker 1: what have they had to say about this potential solution
• 1:42
  Speaker 1: of offering concessions which could mean taking off some retaliatory
• 1:46
  Speaker 1: tariffs too, in order to alleviate that tariff pressure.
• 1:51
  Speaker 3: Well, first of all, you know, I don't know that
• 1:53
  Speaker 3: and the details about what Canada has offered at the table.
• 1:56
  Speaker 2: What I do know is that is that the trade
• 1:59
  Speaker 2: negotiator of.
• 1:59
  Speaker 3: Them have let us know that they are talking about
• 2:03
  Speaker 3: those three thirty eight terriffs you mentioned, the ones that
• 2:04
  Speaker 3: are impending in which the US is threatened to put
• 2:07
  Speaker 3: in place on the nineteenth, which are very very hurtful
• 2:10
  Speaker 3: to manufacturing, and they're also talking about relief on the
• 2:14
  Speaker 3: two thirty two terrorists which are affected steel.
• 2:16
  Speaker 2: Aluminum, wood and automotive.
• 2:18
  Speaker 3: So the fact that they're talking about both of those
• 2:20
  Speaker 3: is very very positive. What they are offering in return,
• 2:23
  Speaker 3: you know, we're not party to they what they are
• 2:25
  Speaker 3: offering in return, but we do know that the US
• 2:27
  Speaker 3: has been very public if President is very public that
• 2:30
  Speaker 3: things related to alcohol sales, counter terroriffts, and dairy quota
• 2:35
  Speaker 3: are the things that they want. But really what's important
• 2:38
  Speaker 3: is that we are actually getting towards some kind of
• 2:41
  Speaker 3: an agreement.
• 2:42
  Speaker 2: I expect that we will learn more as the two.
• 2:45
  Speaker 3: Parties negotiate, but of course you don't tend to negotiate
• 2:48
  Speaker 3: in public. So what's being spoken about the table exactly,
• 2:52
  Speaker 3: you know, we don't know, but it is encouraging. Most
• 2:55
  Speaker 3: of what Canada manufacturers goes to the US and becomes
• 2:59
  Speaker 3: part of made.
• 3:00
  Speaker 2: In America products. So it's really important for.
• 3:03
  Speaker 3: Canada and the US to have some kind of certainty
• 3:06
  Speaker 3: because that certainly uncertainty we've had is actually the biggest
• 3:10
  Speaker 3: is the biggest challenge we've seen in the sector and
• 3:12
  Speaker 3: by members of manufacturing in both Canada the US. So
• 3:15
  Speaker 3: the fact that they're actually having substantial talks towards some
• 3:19
  Speaker 3: kind of outcome is a good thing.
• 3:21
  Speaker 1: You know, when we talk about potential concessions, part of
• 3:24
  Speaker 1: what is being reported now and sources have confirmed this
• 3:27
  Speaker 1: to CBC's Katie Simpson and to CBC News talking about
• 3:32
  Speaker 1: these potential concessions in some cases that could mean putting
• 3:35
  Speaker 1: the alcohol American alcohol back on the shelves and some
• 3:38
  Speaker 1: provinces that have continued to pull that off the shelves
• 3:41
  Speaker 1: and that has of course really had some US officials
• 3:44
  Speaker 1: sit up and take notice as well. But also we
• 3:47
  Speaker 1: know that supply management that was something that our Katie
• 3:50
  Speaker 1: Simpson really emphasized it. That is something that has been
• 3:53
  Speaker 1: emphasized to something that cannot be touched, but we know
• 3:56
  Speaker 1: it is a major irritant for the American side. What
• 3:59
  Speaker 1: do you feel would be worth it in terms of
• 4:03
  Speaker 1: concessions for what we're getting, because the reporting suggests that
• 4:06
  Speaker 1: the US says, hey, you know what, there's going to
• 4:07
  Speaker 1: be those sectoral tariffs, but maybe the rate could change.
• 4:11
  Speaker 1: So what do you think is worth it for us
• 4:13
  Speaker 1: to give up to get something?
• 4:14
  Speaker 2: Well?
• 4:15
  Speaker 3: I think at first of all, certainty the most important
• 4:18
  Speaker 3: thing right now for our sector is having a certainty
• 4:21
  Speaker 3: in terms of our trading relationship with US.
• 4:23
  Speaker 2: So what are the rules? Are the rules going to
• 4:25
  Speaker 2: be durable?
• 4:26
  Speaker 3: And most importantly, and I can't over emphasize this, those
• 4:29
  Speaker 3: impending tariffs under Section three point thirty eight would be
• 4:33
  Speaker 3: devastating to manufacturers, especially in Ontario and Quebec and in BC,
• 4:36
  Speaker 3: so getting those off the table, having those not implemented.
• 4:39
  Speaker 2: So I think so certainty getting rid of those tariffs.
• 4:43
  Speaker 3: What how the government decides to negotiate what it wants
• 4:46
  Speaker 3: to you know, to give you know.
• 4:47
  Speaker 2: Give back and forth is probably you know, their their decision.
• 4:53
  Speaker 3: But from a point of view of manufacturers, it's getting
• 4:55
  Speaker 3: that certainty and certainly getting not having those new tariffs
• 4:59
  Speaker 3: in posts.
• 4:59
  Speaker 2: Getting of those sections two thirty two.
• 5:01
  Speaker 3: Terriffs would be the absolute goal where the government has
• 5:05
  Speaker 3: to go.
• 5:06
  Speaker 2: You know, they're going to figure that out.
• 5:07
  Speaker 3: But right now we've been living in a lot of
• 5:10
  Speaker 3: uncertainty and a lot of threats of new tariffs. If
• 5:13
  Speaker 3: we can get out from under those, it will help
• 5:15
  Speaker 3: manufacturing in Canada in particular, but certainly right across North America.
• 5:20
  Speaker 1: You know, when we're talking to about potential concessions, I
• 5:23
  Speaker 1: wanted to ask you about the trust factor most certainly,
• 5:26
  Speaker 1: that is something that I would imagine is coming up
• 5:29
  Speaker 1: in those conversations that you have with other people who
• 5:33
  Speaker 1: might be on this committee as well, on this advisory committee.
• 5:36
  Speaker 1: Is there sort of this potential for a trust issue
• 5:41
  Speaker 1: because there has been in the past cases where Canada
• 5:44
  Speaker 1: has made concessions where we're talking about the digital services tax,
• 5:47
  Speaker 1: tax and other issues, where there's concessions that have been
• 5:50
  Speaker 1: made and then nothing has happened in return.
• 5:54
  Speaker 3: Well, I think now now that they're having those substantial
• 5:57
  Speaker 3: discussions looking at all phases both of the both the
• 6:00
  Speaker 3: those those two different sets of terroiffs, plus also a
• 6:03
  Speaker 3: discussion about the you know, a long term agreement, whether
• 6:06
  Speaker 3: it's in under Kuzma or outside of Kuzma. I think
• 6:10
  Speaker 3: that's absolutely correct. I think right now is the time
• 6:13
  Speaker 3: to get what Canada needs and then, you know, but
• 6:16
  Speaker 3: not bargain anything else before that. So I think I
• 6:19
  Speaker 3: think the discussions are going to be in the room.
• 6:21
  Speaker 3: I know everybody wants to speculate, but they'll be in
• 6:23
  Speaker 3: the room. Well, I'm I'm optimistic, as I know some
• 6:26
  Speaker 3: A lot of my counterparts are that that that we're
• 6:29
  Speaker 3: in we're in the process we've wanted to be in
• 6:31
  Speaker 3: for months to have an actual substantial discussion about you know,
• 6:35
  Speaker 3: what each side is willing to give and take, And
• 6:39
  Speaker 3: that's all I can That's as far as I could
• 6:41
  Speaker 3: be willing to speculate at this point. I think it's
• 6:43
  Speaker 3: it's this is a better position that we've been in
• 6:45
  Speaker 3: for some months.
• 6:47
  Speaker 2: Uh, And I'm hopeful that the negotiators will will we'll
• 6:51
  Speaker 2: we'll do a great.
• 6:52
  Speaker 3: Job and get us to something that allows It really
• 6:57
  Speaker 3: is comes down to certainty, so that we have access
• 6:59
  Speaker 3: to their market and that we have some level of predictability.
• 7:03
  Speaker 3: And you're absolutely right, getting a review or getting a
• 7:07
  Speaker 3: revised Kuzma, which has a lot of other things other
• 7:10
  Speaker 3: than these tariffs, which provides that long term certainty would
• 7:14
  Speaker 3: be would be our preference. I think it's all of
• 7:16
  Speaker 3: our preference, and as I understand, the US is willing
• 7:20
  Speaker 3: to talk about that as well. So, like I said,
• 7:22
  Speaker 3: this is the this is the beginning of probably the
• 7:25
  Speaker 3: toughest part of the negotiation.
• 7:27
  Speaker 2: If I was to speculate.
• 7:29
  Speaker 1: Well, mister Darby, I have so many more questions for you,
• 7:31
  Speaker 1: and I haven't unfortunately run out of time though for
• 7:33
  Speaker 1: this conversation but thank you so much for joining us
• 7:36
  Speaker 1: and for your insights on this breaking news story.
• 7:37
  Speaker 2: We appreciate it, Thank you very much.
• 7:40
  Speaker 1: That is Dennis Derby. He is the president of Canadian
• 7:42
  Speaker 1: Manufacturers and Experters and also a member of the Advisory
• 7:45
  Speaker 1: Committee on Canada US Economic Relations. Thanks again,