Personal connections are “people trade” that keeps trade and investment working and really moves the economy, the Consul General of Canada said at a recent international breakfast hosted by the CalChamber Council for International Trade.
Consul General Rana Sarkar, dean of the San Francisco consular corps, told his audience that Canada-U.S. trade “succeeds because it’s actively maintained by the people in this room and it works when the rules are predictable, borders are efficient, disputes are managed with pragmatism and restraint.”
When those conditions weaken, he said, confidence erodes and investment goes elsewhere.
But Canada wants to see the United States succeed, Sarkar said. “We are your neighbors, but we’re also your cousins and friends and we need to deepen our ability to work together.”
U.S.-Mexico-Canada
Renewing the U.S.-Mexico Canada Agreement (USMCA) is the foundation to the next moment of going forward in trade, according to Sarkar. Canada shares the USMCA commitment to open markets, evidence-based regulation and the rule of law, and is investing heavily in skills and innovation.
The discussion about the agreement (scheduled to begin July 1) is a review to see what’s working and what’s not, Sarkar explained. Both the U.S. and Canada have identified issues with the USMCA, which went into effect on July 1, 2020.
Sarkar identified the “big topics” as including dairy industry concerns, technology and digital trade, autos, labor and supply chain.
Canada’s chief trade negotiator and ministers are close with U.S. Trade Representative Jamieson Greer and other trade folks in Washington D.C. and there are “constant conversations,” Sarkar said. Similarly, conversations are happening between the United States and Mexico trade officials, he added.
Sarkar said the USMCA is “the most successful trading arrangement of any countries in the history of this planet” and “we all have a vested interested” in seeing it continue.
Looking Ahead
A lot of work remains, Sarkar said, citing the need for Canada to electrify its industries and create a whole new layer of power generation, as well as mine critical minerals to ensure the country is not dependent on the China supply chain. “We’re working with our partners down here to do that,” he said.
Sarkar closed with a recap of how Canadian Prime Minister Mark Carney sees his country going forward in the next few years. Canada is working on building its energy system, defense infrastructure and alliances around the world.
“We need to work with our North American colleagues…to reset to win for this next decade,” Sarkar said, adding that he feels hopeful for the work because of some of the “political rhetoric we’re hearing now,” impressive candidates with sensible agendas, business leaders and others coming together.
