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Canada Implements New Procurement Policy Amidst Trade Tensions
On Monday, Canada introduced a new provisional policy designed to regulate public procurement. This policy aims to limit the ability of companies to bid on government contracts if their home country restricts Canadian firms’ access to similar opportunities. Joël Lightbound, the Minister of Supply, stated that the objective of this measure is to prioritize Canadian businesses and those from “reliable business partners.”
Prime Minister Carney is scheduled to convene with his cabinet on Tuesday, marking their first meeting since Donald Trump‘s recent pronouncements regarding the trade agreement. The Prime Minister is also slated to meet with other Prime Ministers in the coming week.
Fen Hampson,a professor of international affairs at Carleton University,advised Prime Minister Carney to maintain a low profile. Hampson suggested avoiding a direct, public response to Donald Trump’s latest threat, advocating instead for a strategy focused on securing the most favorable agreement possible through negotiations with American officials.
“There is a basic asymmetry in Canadian-American trade relations,” Hampson explained. “We primarily export raw materials and intermediate goods, which grants Trump a degree of negotiation leverage. Though, this also leaves American industries and manufacturers vulnerable. We are already witnessing the consequences, such as the 50% tariffs on aluminum.”
Hampson further commented that any reaction from Donald Trump would likely stem from internal pressures exerted by American consumers and manufacturers who are increasingly reliant on imported goods and materials.
“He is beginning to face political criticism, and this impacts Canada,” Hampson observed. “Patience is key. It’s challenging when people advocate for a confrontational approach, but that is not the way to achieve success with Trump.”
Donald Trump’s correspondence concerning tariffs addresses the issue of fentanyl originating from Canada and its flow into the United States. This issue, along with illegal immigration and border security, was the initial justification for tariffs imposed on Canada and Mexico.
data from U.S. Customs and Border Protection indicates that approximately 26 kilograms of fentanyl were seized at the Canadian border during the current fiscal year. in contrast, 3,700 kilograms of the drug were intercepted at the Mexican border during the same period.
