Commentary
Calls for Canada to respond aggressively to U.S. trade threats ignore the economic realities of such a move. Consider Quebec and Alberta energy. The stakes for Alberta and Quebec in this morbidly anticipated trade-war gamble are profoundly asymmetric, with Alberta standing to lose far more in absolute terms and per capita. The arguments to engage in such conflict are reckless and fail to recognize the magnitude of our economic integration with the United States.
Canada and the United States share one of the world’s most extensive and intertwined trading relationships. In 2022, bilateral trade in goods and services exceeded $900 billion annually. Canada exported 75 percent of its goods to the United States. Beyond trade, bilateral investment is immense, with over $1 trillion in two-way direct investment (All amounts in Canadian dollars)….