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At a tense moment for Canada-U.S. relations, Trudeau travels to D.C. for trilateral talks

At a tense moment for Canada-U.S. relations, Trudeau travels to D.C. for trilateral talks

CBC
Sunday, November 14, 2021 11:56:07 AM UTC

Prime Minister Justin Trudeau will travel to Washington this week for the first Three Amigos summit in five years — a trilateral meeting with U.S. and Mexican leaders that has been dismissed in the past as high on symbolism and low on substance.

The one-day summit comes at a challenging time for the Canada-U.S. relationship.

The election of U.S. President Joe Biden was celebrated by many in Canada as the dawn of a new era in bilateral relations after the fractious four-year term of his predecessor, Donald Trump. During his campaign, Biden promised a return to "normalcy" and better relations with U.S. allies; the revival of the once-dormant Three Amigos gathering is a sign that the Trump-era froideur is over.

But on Biden's watch, a number of new irritants have emerged. Biden, more beholden to progressive elements in the Democratic Party than past presidents, has made climate policy a priority to appeal to green activists. Canada's energy sector is paying a price.

In the first week of his presidency, Biden cancelled permits for the Keystone XL pipeline, dealing a multi-billion dollar blow to Alberta's oilpatch.

He has done little to stop Michigan Gov. Gretchen Whitmer, a Democrat, from trying to shut down Enbridge's Line 5 pipeline — a crucial artery that supplies oil products and natural gas to power huge portions of the Canadian economy. Experts agree its closure would be devastating to Canada — a threat to the continued operation of Toronto's Pearson International Airport and the free flow of fossil fuels to other critical industries.

A spokesperson for Biden said this week the White House is awaiting a review by the U.S. Army Corps of Engineers before deciding whether to wade into a debate over the future of the controversial pipeline. Labour Minister Seamus O'Regan — who served as the natural resources minister until recently — has said the line's continued operation is "non-negotiable."

While Canada lifted land border restrictions on non-essential travel this summer, the Biden administration only did away with its months-long ban on cross-border travel last week. Non-stop flights from Moscow and Beijing were arriving at New York's JFK airport while fully vaccinated Canadian travellers were turned away at land crossings in the states of Maine, New York and Washington — disrupting business, tourism and family reunification.

Legislation before the Democratic congress also threatens trade relations between two of the world's largest economies. Congress has drafted a bill, the Build Back Better Act, that would offer sizeable tax credits worth up to $12,500 to the buyers of new electric vehicles — as long as those cars and trucks are manufactured in the U.S.

That tax measure would be a devastating development for the Canadian automotive sector, which is trying to attract new investment as the industry transitions away from internal combustion engines.

Biden's massive infrastructure bill, which he is set to sign into law tomorrow, is littered with Buy America provisions that could leave Canadian companies out of the competition for contracts potentially worth billions of dollars in government business — provisions that undermine the new NAFTA signed by the three countries just a few years ago.

Deputy Prime Minister Chrystia Freeland has identified this protectionist push as a significant problem but Canadian protests have so far fallen on deaf ears.

David MacNaughton, who served as Canada's ambassador to the U.S. during the Trump administration, said that while the former reality TV star-turned-politician generated a tremendous amount of "unpredictability" in the Oval Office, it was still possible for Canada to advance its agenda because Trump "didn't have any particular ideology. In fact, he had no real ideology at all."

"The problem you face with President Biden is you have some really comforting words about allies but you have, within his own party, and his own domestic agenda, some real ideologically protectionist elements which are going to cause problems in terms of our mutual economic interest. We're already seeing that," MacNaughton told CBC News.

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