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Canada might be trading on rough seas this yr as it’s buffeted by conflicts world wide, says a commerce knowledgeable.
“Canada is a buying and selling nation and the world is in numerous turmoil nowadays,” mentioned Mark Warner, principal counsel at MAAW Legislation, in a latest interview with the Monetary Publish’s Larysa Harapyn.
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“We’re going to be buffeted by numerous worldwide traits occurring.”
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Warner believes Canada might be caught up in disputes between america, its largest commerce accomplice, and China and “sideswiped” because the U.S. ramps up enforcement of export controls.
Canada’s personal relationship with China is “a mixed-bag,” he mentioned. We proceed to “quietly” trade with China by exporting coal and agricultural merchandise to the market.
However Ottawa’s transfer to tighten its funding guidelines for takeovers by Chinese language and state-owned enterprises within the critical minerals market might trigger tensions.
“That clearly roils our relationship with China,” he mentioned.
Canadian pension funds, nevertheless, proceed to be very energetic in China, regardless of the U.S. drawing again.
Canada additionally has its personal disputes with buying and selling companions reminiscent of India which might have an effect on its potential to enter the Indo-Pacific Financial Framework for Prosperity (IPEF).
“I don’t see us stepping into that anytime quickly,” he mentioned. “My guess is we’re persevering with to have numerous difficulties diplomatically with India.”
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Ongoing disputes over softwood lumber, dairy, auto guidelines and expertise proceed with america, mentioned Warner.
Canada lately focused a few of the huge tech firms with a proposed digital companies tax forward of the Organisation for Economic Co-operation and Development (OECD) releasing multilateral guidelines.
“The People have fairly nicely signalled that if we do this, they’ll goal us by some means beneath the USMCA (United States–Mexico–Canada Settlement),” he mentioned.
• E mail: novid@postmedia.com
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