(first published in the Niagara Independent)

This week a new agreement was announced between the U.S. and the U.K. on a $350 billion technology pact involving AI, quantum computing and nuclear energy. The “Tech Prosperity Deal” was done as a part of U.S. President Trump’s second state visit to the U.K. The agreement included such things as joint efforts between the two countries to work toward AI models for healthcare, nuclear projects and quantum computer capabilities. There is also a security aspect to the arrangement, and security matters are a big priority to the U.S at present. 

Although the $42 billion involved is not an enormous amount considering the very large economies of the two countries, it is very likely that partnerships will develop that endure and involve much larger expenditures over time. In the rapidly developing areas considered to be very important for future economic growth such as AI and quantum computing, these types of partnerships among countries will become increasingly vital. 

The fact that Canada has no part of this agreement is a major failure for our government. Although the Carney government has claimed to be prioritizing things like AI, and even named a Cabinet member, Evan Soloman, as Minister of Artificial Intelligence and Digital Innovation, Canada was left out of this deal. Canada is a much more significant trading partner with the U.S. than the U.K., yet there was no indication that either the U.S. or U.K. government bothered to consider Canada as a potential partner. Canada also has considerable expertise in the area of nuclear energy, which was also ignored in the U.S.-U.K. arrangements. Canada’s declining reputation on the world stage, which has been taking place since the beginning of the Trudeau government a decade ago, has been once again shown to be a detriment to our country. 

There is also no question that the antagonistic approach the Carney government has taken to the U.S. government’s tariffs has been a factor in discouraging the U.S. from seeking partnerships with Canada. There were only two countries who levied retaliatory tariffs against the U.S. – China and Canada. Not surprisingly, there have been no trade deals reached between the U.S. and either of these countries. The Carney government did finally see the light and remove the retaliatory tariffs on U.S. goods covered under the USMCA trade agreement after the damage done to Canadian businesses and workers became clear, but it was a foolish policy in the first place. As a result, a bitter taste remains in Canada-U.S. relations. 

This author had a recent meeting with U.S. Ambassador to Canada, Pete Hoekstra, to discuss trade issues of important to Canadian manufacturers and other businesses. The Ambassador pointed out that a key irritant with Canada was that the Canadian government levied tariffs on goods that were supposedly protected under the USMCA trade agreement, while the U.S. tariffs only applied to non-USMCA items. This was viewed as a potential undermining of the USMCA and does not bode well for the agreement’s negotiation next year. 

During our meeting, Hoekstra also pointed out the hypocrisy of the Carney government, which likes to promote the juvenile “elbows up” cantankerous reaction to the U.S. when it suits them for political purposes with Canadians who have an anti-American streak. On the other hand, when Carney failed to reach a trade agreement with the U.S. by the Aug. 1 deadline, he claimed he would meet, he has now changed his tune in stating that Canada has the best trade deal with the U.S. and the lowest effective tariff rate. You can’t have it both ways Carney, and Canadians should not fall for this malarkey. 

The Liberal government has made a big deal of moving away from the “orange man bad” U.S. economy toward Europe and even China. This approach has been attempted by many governments over the years and has always failed. The U.S.-U.K. deal on AI and other forward-looking industries is interesting as U.S. representatives have noted the U.K. lightened up on the suffocating red tape that is typical of EU countries, which was one of the reasons the U.S. did the deal with the U.K. and not the EU. The reality for Canada’s future trade will always be primarily in the U.S. market for reasons such as geography, common language, similar culture and highly integrated markets. Anyone who thinks otherwise is either delusional or dishonest. 

The U.S.-U.K. deal should be a wake-up call for the Carney government. The U.S. is proceeding to make deals with other countries that are attempting to maintain a productive relationship with the U.S. At the moment, that doesn’t include Canada. Although Carney has modified his most insulting comments toward the U.S. of late, he doesn’t seem to have changed his overall strategy that much as the Liberals see votes in keeping anti-Americanism alive. The real question is will these votes really be worth further destruction to the already-damaged Canadian economy and standard of living. 

Catherine Swift

Catherine Swift is President of the Coalition of Concerned Manufacturers & Businesses of Canada (CCMBC). She was previously President of Working Canadians from 2015-2021 & President & CEO of the Canadian Federation of Independent Business (CFIB) from 1995-2014. She was Chief Economist of the CFIB from 1987-1995, Senior Economist with TD Bank from 1983-1987 & held several positions with the federal government from 1976-1983.

She has published numerous articles in journals, magazines & other media on issues such as free trade, finance, entrepreneurship & women business owners. Ms. Swift is a past President of the Empire Club of Canada, a former Director of the CD Howe Institute, the Canadian Youth Business Foundation, SOS Children’s Villages, past President of the International Small Business Congress and current Director of the Fraser Institute. She was cited in 2003 & 2012 as one of the most powerful women in Canada by the Women’s Executive Network & is a recipient of the Queen’s Silver & Gold Jubilee medals.

She has an Honours BA and MA in Economics.