Friday, August 8, 2025

What's at stake with these incapacitated Liberals at the helm?

 

Huh? What a headline in Winnipeg!

I don't know why Canada's best-interests were swept into the dustbin in the "first 100 days" of a popular U.S. President. It seems idiotic to see Canada's best game (international trade) and the resources behind it lost to a novice negotiator in Prime Minister Mark Carney.

Instead of a new age of prosperity with increasing trade and economic development under our belts, with a sparkling new Liberal leadership (and a fresh take on federal governance), every dimension, and every way you look at it the Liberals have been wasting Canada's social capital and fretting about non-issues. Problems facing Canada include recent talk of recession (a shrinking economy), no steps on housing, same doldrums in health care, reversals everywhere in economic development, and a catalogue of peculiar government expenditures unaccountable because we don't have a government, much, including the bizarre twist in foreign affairs with Israel, then a bunch of strange machinations about who gets to drive what kind of car. And talk about picking fights you can never win. How about Canada challenging the U.S. to a trade war?

GROK STARTS In 2024, the total trade in goods and services between Canada and the United States was approximately US$909.1 billion. U.S. goods exports to Canada were US$349.9 billion, while imports from Canada were US$411.9 billion, resulting in a goods trade deficit for the U.S. of about US$62 billion. Services trade saw U.S. exports to Canada at US$90.3 billion and imports at US$57.0 billion, yielding a U.S. services trade surplus of US$33.2 billion. When combining goods and services, the overall U.S. trade deficit with Canada was around US$35.7 billion in 2024. Daily trade flows averaged about US$2.5 billion, with Canada being the top export market for 34 U.S. states. Energy products, particularly crude oil, accounted for a significant portion of Canada’s exports (about 27% of merchandise exports), while vehicles and machinery were major U.S. exports. GROK ENDS

The crux of the story is pretty simple. Half of Canada's economy flows in by rail or pipe, or truck from the U.S., and not a small amount of that is our food. Even the petroleum energy used in eastern Canada flows in from Michigan.

And not just a trade war with the U.S.. Canada is being snubbed at every turn. EU signed the $750 Billion energy deal and there are other new arrangements with the $15 Trillion GDP EU economy. The overall agreement with the EU was $1.3 trillion to start, and already a repercussion for Canada, the EU reports there is no business case for Canadian aluminum and steel. Canada was reportedly told, "Your only market is the U.S.."

Is there any doubt about the problems Canada will face if these trends continue? And continue they do. Mexico is the latest to snub Canadians. Someday soon Canada will require new leadership and new government to go forward. (That was rather obvious until the Liberal switcheroo.)

NOW THIS, AN X POST ON THE MEXICO TRADE FIASCO
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