Watching Canada in The New World

Watching Canada in The New World

Deepak Razdan                            

Monday, 5 May, 2025

The New World is headed towards witnessing some significant events. Prime Minister Mark Carney of Canada, re-elected to his office in recent federal polls, is all set to meet Mr Donald Trump, the President of the United States, on 6th May.

The Canadian Prime Minister will be representing not only Canada at his White House meeting, but also convey in many ways the sentiments of the whole world.

None can represent China or Russia, but certainly in some ways, the Prime Minister will “speak” for most remaining parts of the world, especially the 75 countries currently in talks with the US for bilateral trade agreements.

Mr Carney, announcing his meeting with Mr Trump, said the “meeting will focus on both the immediate trade pressures and the broader future economic and security relationship between the two sovereign nations.”

The Canadian Prime Minister spoke to President Trump just after his re-election on 29th April. His office said “The leaders agreed on the importance of Canada and the United States working together – as independent, sovereign nations – for their mutual betterment.”

When Mr Trump was celebrating his first 100 days of his Second Presidency in Michigan, Mr Carney was also addressing his victory rally and echoed in his speech his country’s fears that “America wants our land, our resources, our water, our country.”

In his observations, Mr Carney had often stressed on the sovereignty of his nation only because Mr Trump had some days earlier spoken a few times about Canada being fit to be merged with the United States as its 51st State.

More than trade issues, assertion of political sovereignty of Canada will therefore be the principal message coming out of Mr Carney’s meeting with Mr Trump.

Along with this, the meeting will show to the rest of the world a path to follow to keep its economic sovereignty intact while negotiating with the US. It will be for different countries to use their talent-treasure to identify that path, understand the signages and hear the silent unspoken words.

The US forms the core of the New World that was born after Mr Trump’s inaugural speech for his second term as President on 20th January. Mr Trump’s punitive tariffs against the whole world later upended the world trade order and confirmed the world had really transformed, and was a New World really.

Nearly 75 countries are now negotiating trade tariff agreements with the United States, one-to-one, without knowing how their neighbours, allies or adversaries are working out their trade deals and responding to the US demands.

Mr Trump spoke on his inauguration day: “From this day forward, our country will flourish and be respected again all over the world.  We will be the envy of every nation, and we will not allow ourselves to be taken advantage of any longer. During every single day of the Trump administration, I will, very simply, put America first.”

Indicating his 2nd April tariffs offensive, the US President said “I will immediately begin the overhaul of our trade system to protect American workers and families. Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens.”

In the New World that took shape following Mr Trump’s speeches, Executive orders, remarks and X mentions, each country of the world is worried about its own financial prosperity and can have little concern about other nations, poor or developing. WTO protection is gone, and each trading nation must learn to re-sharpen its negotiating talents for its maximum gain.

India has gone through several rounds of discussions with officials of the United States Trade Representative (USTR) and hopes to reach the first tranche of its Bilateral Trade Agreement by Fall (September-November) this year.

The US is having talks with the United Kingdom and the European Union and they expect early agreements. Talks are also on with Japan. Mr Trump indicated early talks with China which has been imposed the highest trade tariff of 145 per cent. China may be insisting on US relaxations on the tariff for talks.

The US President told his Michigan rally that China had stolen the largest number of manufacturing jobs from his country. US had a trade deficit of nearly 300 billion dollars with China. But China being the second largest economy in the world, a major manufacturer and a big consumer, will certainly find a way to negotiate with the US, the Number One economy.

It will be significant to watch how other economies do their negotiations. During the pre-WTO negotiations towards building the multi-nation World Trade Organisation, services of international experts were available and arguments were repeatedly made to protect the interests of growing economies coming out of poverty.

The emergence of the new organisation was opposed in many campaigns for fear it would be pro-rich nations, and loot the developing economies.   

Canada and Mexico were the first two countries which Mr Trump believed were responsible for several major problems for the US. Mexico was blamed for flooding the US with illegal immigrants with criminal records.

Canada was held responsible for allowing the entry of poisonous drug fentanyl in the US, threatening the lives of young people. Heavy tariff levies were announced for Canada and Mexico to discourage their products entering the US market.

While the northern and southern neighbours of the US responded to Mr Trump’s charges, Canada saw a high wave of resentment against the US for Mr Trump’s talk of annexing Canada as the 51st State.

In his meeting with the US President, Mr Carney will have strength from the upcoming Royal Visit to Canada. On 2nd May, he announced: “Their Majesties The King and Queen will visit Canada on May 26 and 27, 2025.”

“We will have the privilege of welcoming His Majesty King Charles III, who will deliver Canada’s Speech from the Throne on May 27. This will be the first time in nearly 50 years that Canada’s Monarch takes part in the State Opening of Parliament. This historic honour matches the weight of our times. Canada has a steadfast defender in our sovereign.”

President Trump recently received an invitation from King Charles III for a second State visit to the United Kingdom. The invitation letter was hand-delivered to the US President by UK’s Prime Minister Keir Starmer.