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Trump’s tariff threat shows failure of ‘free trade’ promise

Media Advisory
January 20 2025

Leaders must disentangle Canada from U.S. economy to rebuild democracy, says Council of Canadians

[Ottawa] – President-elect Trump’s threat of introducing tariffs on Canadian products shows that Canada’s many democratic sacrifices in the name of ‘free trade’ deals were for naught, says the Council of Canadians.

“Even though Canada has made incredible concessions through trade deals to gain access to American markets, Trump is now using tariffs as a bullying tactic to pressure us into handing over whatever resources he and his corporate buddies want—our water, critical minerals, oil and gas, you name it,” says Barry-Shaw.

“The whole premise of these trade deals, from the Canada-US FTA to NAFTA to CUSMA, was that Canada would sacrifice some of our policy space, give enormous power over to transnational corporations, we would effectively curtail our democracy, but in exchange we would get unfettered access to the U.S. market,” says Nik-Barry Shaw, trade and economic justice specialist the Council of Canadians.

“For the last forty years, we’ve warned that tying our economic fate so closely to the U.S. through these deals would erode our democracy and our ability to chart our own course in the world. It is horrifying to see Trump’s economic blackmail bringing our worst predictions to life,” says Barry-Shaw.

The Council of Canadians has fought against these corporate trade deals because they give corporations the ability to sue our governments for implementing policy that responds to domestic needs, and to conduct trade tribunals in secret. Under NAFTA alone, Canada has been sued 41 times and has paid more than $300 million in damages and settlements to private companies.

“Our corporate and political elites have displayed a disconcerting willingness to give in to Trump’s bullying,” says Barry-Shaw. “This has to stop. No more concessions, no more appeasement, no more grovelling at his feet. It’s time for Canada to have a real conversation about disentangling ourselves from the U.S., not offering ourselves up piecemeal to the United States.”

The Council of Canadians calls on federal and provincial politicians, institutions, businesses, and communities to work together for a sustainable future that ensures shared prosperity and a decent quality of life for all, rather than bowing to Trump’s demands. Read the Council’s vision for a democratic Canada here.

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For comment contact:
Robin Tress
Council of Canadians
613-404-2004