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Ian Lee offers a wake-up call on Canada-US trade leverage:
“Why don’t we Canadians tariff products that will hurt them, like potash, oil and gas?”
“These are the natural resources. Natural resources are commodities. That means there’s a single price… Most of those natural resource commodities are a world price and you can source them… often from other countries around the world.”
On size: “The totality of our exports, 400 billion going to the States is 1.5% of US GDP. And I don’t think anyone’s going to argue you can bring down any company or country because they lose 1.5%.”
“Even if we eradicated all exports to the United States, it would affect 1.5% of US GDP.”
“They’re so large at 32 trillion and we are relatively so small that we don’t have the leverage or the clout or the muscle… to inflict serious pain on the United States.”
“This is arithmetic, this isn’t theory. The numbers do not support the idea that a 2 trillion economy can devastate a 32 trillion economy that can source from the rest of the world.”
Commodities have world prices. Canada’s entire export book to the US is a rounding error on a $32T economy. That’s the constraint @SprottSchool
HOLY SH**
10% of Canada’s work force could be WIPED OUT if Mark Carney doesn’t get back to the table and get a trade deal.
Canada would suffer the worst recession in Canadian history
Maybe this is what it will take to wake up Canadians.
Mark Warner, one of Canada’s best trade lawyers—and a friend—dismantles, one by one, every argument used to defend Canada’s current negotiating strategy with the United States.
A masterclass of an interview.
Watch the whole thing. Oh, and the midterms won’t make a difference...
@RyanJH42@CanadianPolling It’s funny when the retarded, liberals accused Trump of having dementia and when Biden was president, they wouldn’t dare say he had dementia when he was clearly out of his mind