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The Politics of Economy & Trade
Diplomacy, parliament, and the state of the relationship

In March 2003, US Ambassador to Canada Paul Cellucci delivered a message of disappointment from the White House, responding to Canada’s lack of support for the US-led invasion of Iraq. He pointedly remarked, “security will trump trade, there is no doubt about that,” going on to say that there would be “short term” strains in the relationship.

Shortly after, President Bush cancelled his first state visit to Canada in favour of meeting with Australia’s Prime Minister, John Howard (a member of the so-called ‘coalition of the willing’ – states supporting the US invasion).

Many Canadians, especially those with business interests in the US, are worried that Canada’s foreign policy stance will:

• At worst invoke retaliation or a tightening of border controls.
• At least harden the United States’ stance on negotiations over trade issues such as the softwood lumber dispute.

There is growing pressure on the Canadian government to restore its favourable relationship with the United States. A number of high-level insults directed at the US and its President, as well as the generally cool relationship between Canadian Prime Minister Jean Chrétien and US President George W. Bush, have left room for rapprochement.

November 2002:

Prime Minister’s Communications Director, Françoise Ducros, calls George Bush “a moron.”

March 2003:

Natural Resources Minister Herb Dhaliwal says that Bush is “not being a statesman.”

February 2003:

Member of Parliament (MP) for Mississauga, Carolyn Parrish makes supposedly off-the-record remarks stating, “damn Americans, I hate those bastards.”

There is already a push to repair the damage, to the extent that the government’s once hostile position on the US National Missile Defence (NMD) program has shifted. It is suddenly up for consideration, and Paul Martin – likely the next leader of the Liberal Party – has already indicated his support for Canada’s involvement in NMD.

Canadian Political Party Snapshots

Liberal Party:

While outgoing Prime Minister Chrétien may not get along with George W. Bush, the Liberal Party firmly supports close trade relations with the United States. The so-called ‘leader in waiting,’ Paul Martin, looks set to build closer links to the government in Washington.

New Democratic Party (NDP):

With significant support from trade unions, the NDP does not favour NAFTA and fights against overbearing US influence in Canada. The NDP pushes for a diversification of Canadian trade relations.

Canadian Alliance Party:

The Canadian Alliance argues for closer economic ties with the United States and reproached the government for staying out of the invasion of Iraq.

Progressive Conservatives (PC):

The Conservatives also support close ties with the United States and argue that the Liberal government has damaged relations.

Bloc Québecois (BQ):

The fiercest opposition to the US-led war was in Québec. The BQ, NDP, and the Liberal Party gave a rare standing ovation to the Canadian Prime Minister after he announced that Canada would not support the war. As sovereigntists, the BQ fights against Canadian and American dominance, but also recognizes the necessity of a healthy trading relationship.

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