Carney's Likely Bad Trade Deal
The media pundits told us Carney was the only one who can negotiate. So short was Canada of anyone to negotiate, we went all the way across the pond for an expert.
And so far it appears to be the mother of all blunders. Not only is Carney struggling to negotiate, he is finding ways to excel at it.
Excelling at struggling to negotiate.
When Trump announced they are drawing up the paperwork and granted a 3 day extension, it felt like deja vu all over again.
Recall Gordie Howe Bridge. We had a deal that Canada would first recoup its debt and expenses and then share the revenue.
Carney gave away the farm on that one rather than taking it to court.
Trump recently showed a picture of him throwing away the Keystone.
Rather than worry me, were I Prime Minister I would be secretly very happy about this. After all selling into a captive market being price takers is not my idea of a winning strategy.
I might even goad Trump to cancel Keystone. Since last year I talked about how Canada's issues are 90% inside of Canada.
For example, getting the oil patch to export 4 million barrels to tidewater and by passing Line 5 into Ontario.
Carney and his minister Hodgson declared defeat and waved the white flag early. With Hodgson talking about 'trading desks' in Asia in lieu of building anything.
As Carney and the Liberals get the agreement together it's sure to be a bad deal. Anything done under duress to avoid conflict is likely to be disadvantageous.
Myself I would sign nothing. Let Trump put in the tariff and if and when we are ready to respond we would do so.
One can't sign agreements only for them to be ripped up 2 months later.
As for the auto industry, I've previously said we would give a tariff credit equal to some multiplier of depreciation and payroll. Not just from the US but from any country in the world.
Lowering tariffs, simplifying tariff bureacracy while creating incentives for Canadian jobs would be our goal.
This differs markedly from Carney's big government dirigisme, with the attendant deficits, debts, and inevitable underperformance.
When someone is setting up a shell game rather than trying to play the losing hand, one should get up from the table. These are the basics of negotiation.