Joe Biden’s U.S. presidential election win will have a significant impact on the Canada-U.S. trading relationship, and Canadian Manufacturers & Exporters (CME) says that while the new administration will operate with more predictability, Canada will have to work hard to stabilize and improve economic ties with its top trading partner.
“Traditionally, Democrats have been more protectionist in their outlook,” says, Dennis Darby, president & CEO of CME. “Mr. Biden campaigned promising to strengthen Buy America, and these policies may force Canadian companies to invest in or relocate to the U.S. To support manufacturing here in Canada, the government will have to offer a competitive business environment that includes important investment tax measures and find ways to ensure Canadian companies have access to the U.S. market in the same way that U.S. companies access ours.”
Darby says CME thinks there are new opportunities to build, trade and work together as a powerful trading block.
CME argues it will be necessary to reinforce diplomatic relations between at the state and senatorial levels to maintain open market access. Canadian and American supply chains are highly integrated and require the two countries to work together to keep the North American market competitive. Furthermore, it will be essential to identify key export sectors to promote, and make sure they have access to the necessary tools to increase their exports.
“The past four years have been challenging and unpredictable for Canadian manufacturers doing business in the U.S., as witnessed by the renegotiation of NAFTA and the tariffs on steel and aluminum. With Mr. Biden, it might be easier for companies to understand how to adjust to the Buy America Act. While these are certainly still protectionist measures, there should be more predictability for our companies,” adds Mr. Darby.
“The U.S. will remain a crucial economic partner for Canada. Our ties must remain strong, in that regard the interests of our exporting companies must be heard and taken into consideration ” says .
Indeed, manufacturing accounts for about 11 per cent of GDP and 1.7 million jobs. Nearly two-thirds of exports are manufactured goods, and more than 80 per cent of these exports go to The U.S. or Mexico.