Adam Pankratz: Like it or not, Canada's economy is tied to the U.S.

Donald Trump’s tariff crusade has frequently made Lewis Carroll’s Mad Hatter look like a paragon of sanity. While is it is tempting to mock and deride the United States at the moment, Canadians need to remember where our economic bread is buttered. Despite anything politicians or leaders may say, and like it or not, Canada’s economic future and success is tied to the United States for the foreseeable future.

While there is no question that our relationship with the U.S. has changed, the notion that “our old relationship of steadily deepening integration with the United States is over,” as Mark Carney suggested, is ridiculous.



Seeking better access and optionality to world markets for many of our products is a path Canada should unquestionably pursue, but it’s integration with the United States that is essential to our future economic prosperity. Ever since Trump stood, like a used car salesman, with his billboard of tariff offerings for the world ready to “make a deal,” countries have scrambled to respond appropriately as markets roiled like no time since the Great Financial Crisis of 2008 . But let us remember who was not on Trump’s bizarre chart outlining tariff rates: Canada and Mexico.

Why? Because our economies are too important to the United States to be treated like other countries in the world. That is due to our level of integration. Trump may not like Canada, but he can’t get rid of us.

Despite not completely avoiding tariffs — notably on automobiles, steel and aluminum — it is important to remember that it is almost certainly Canada’s level of US integration which avoided a far worse outcome. This is, of course, is not an argument against Canada seeking better international access for our products, most notably our oil, gas and mineral reserves. We have been poorly served by sending too large a percentage of our natural resources at discount prices to the U.

S. because we refused, or were incapable of, building out export capacity to other nations. But let’s get real for a second.

Whether it’s the Liberals’ proposed “ Trade Diversification Corridor ” which would invest $5 billion to build infrastructure to “...

help diversify our trade partners...

” or the “ National Energy Corridor ” Pierre Poilievre has suggested which would “...

fast-track approvals [...

] for critical infrastructure across Canada in a pre-approved transport corridor...

” Does anyone seriously believe either of these will happen at speed? I’d sure like to. However, even if you support Canadian economic diversification and believe in Canada’s potential (as I very strongly do) our track record for rapid, decisive delivery of large-scale infrastructure in the last 20 years is at best poor and, more realistically, pathetically embarrassing. The Northern Gateway, Energy East are long consigned to the graveyard of “should have been built” and mining projects like Rook I has been stuck in federal permitting hell for six years despite provincial project approval, indigenous consent and full project financing being completed, with no further hearings scheduled until November.

Is Canada capable of the large-scale infrastructure projects now being trumpeted by all and sundry? Yes. Should any sane person bet our actually building them in a timely manner that would replace our U.S.

dependency? No. We are exceptionally fortunate that by an accident of geography we sit right next to the largest economy on Earth and have, despite the recent tensions, an overall good relationship with the U.S.

Having a friendly, rich consumer market of more than 350 million people right next to you is a privilege most other countries can only dream of. Donald Trump will be gone in 4 years. Despite his grand performances, the U.

S. will remain our number one ally and trading partner no matter what we do. The smart money is that even in 40 years this will still be the case.

Integration with the United States has been and will continue to be the key to Canada’s economic success. We should not want that to end. National Post Terry Newman: Mark Carney, put your elbows downTerry Glavin: Carney may not know why China likes him, but it's plain for all to see.