Canada's not-so-secret weapon

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In today's edition:
→ The coolest head in D.C. is Canadian.
→ C-5 moves to the Senate in a final sprint to Canada Day.
→ ANITA ANAND flags open questions around NATO timelines.
Trade war
QUEEN BEE — KIRSTEN HILLMAN has mastered diplomacy in the age of disruption — often under some stressful working conditions.
Whether it was visiting Mar-a-Lago with then-Prime Minister JUSTIN TRUDEAU, joining MARK CARNEY on his first Oval Office visit, or hosting world leaders in Alberta — Hillman has been there.
Now, Canada's ambassador to the U.S. has been tapped by the PM to serve as Canada's chief negotiator in talks President DONALD TRUMP in pursuit of a new economic and security deal. She'll also continue to serve as Ottawa's envoy.
'That post is the No. 1 post for any prime minister to appoint somebody to,' said FLAVIO VOLPE, the president of Canada's Automotive Parts Manufacturers' Association. 'The fact that a new prime minister, who's come essentially from the outside looking in, has decided to extend her [time] should be taken as a very serious vote of confidence.'
Volpe and Hillman are on the Council on Canada-U.S. Relations put together by TRUDEAU. Carney kept the council intact, though it hasn't formally met since Ottawa entered into 'serious negotiations' with the Americans, Volpe said.
— Diplomacy 101: With a change in government, the council had advised Carney to keep Hillman where she is, given her work ethic, connections and institutional knowledge.
'Let's not make changes for change's sake,' Volpe told Playbook. 'She has done an exemplary job in Washington in terms of getting the Canadian interest across in a highly charged, political environment without offending anybody.'
— No pressure: Hillman is working directly with her counterpart, U.S. Trade Representative JAMIESON GREER, on the deal. They're no strangers. The two worked together during negotiations for the United States-Mexico-Canada Agreement.
She's also often seen with Canada-U.S. Trade Minister DOMINIC LEBLANC coming out of Greer's office building in D.C., as they attempt to hammer out an agreement, sometimes with Commerce Secretary HOWARD LUTNICK.
— Made for the moment: Those who know Hillman say she is one of Canada's most credible and capable voices on the world stage.
JODY THOMAS, former deputy minister of national defense, called Hillman 'the perfect person to be in the role, at this moment in history.'
'She's smart, she's analytical, she understands how to work with our partners and interlocutors in the United States. And she understands the trade file extraordinarily well,' Thomas said to Playbook.
'And when tensions are heightened and emotions are high, her calm and kind demeanor really makes a difference.'
— The exception to the rule: Hillman has been in D.C. for 9 years, first as deputy ambassador then ambassador. There's no fixed term, but her predecessors rarely lasted that long.
Before that, she was Canada's chief negotiator for the Trans-Pacific Partnership.
She's worked in Washington under presidents BARACK OBAMA, TRUMP, JOE BIDEN and Trump 2.0 — all while guarding against their protectionist policies.
'I don't succumb to frustration,' she previously told POLITICO.
— It shows: As Canada's first female ambassador to the U.S., she's spent years building relationships, managing crises and advising Cabinet. She's also pushed Canadian interests outside the White House and deep into red-state America — one spreadsheet and one handshake at a time.
As of December, she'd met with 42 U.S. governors.
— Breaking the glass ceiling: Her service in the role showcases Canada's values on the world stage, said TABATHA BULL, CEO of the Canadian Council for Indigenous Business.
'She continues to set a powerful example as a strong female diplomat,' Bull told Playbook in a statement.
'Canada's decision to stand behind her leadership sends an important message about the value we place on experienced, principled and diverse representation on the world stage.'
→ New envoys on the block: Premier WAB KINEW has tapped RICHARD MADAN as Manitoba's next trade representative to the United States.
'I'm an American. I'm also Canadian, and this sounds corny, but you just kind of want to help,' the former journalist told the Winnipeg Free Press.
Also at work is NATHAN COOPER, Alberta's new rep in Washington. 'What a rocket ride,' he said of the job.
BEHIND THE SCENES — Three Cabinet members have been deputized by Trump to lead trade talks — Commerce Secretary LUTNICK, Treasury Secretary SCOTT BESSENT and U.S. Trade Representative GREER.
— Three is a crowd: A POLITICO team led by DANIEL DESROCHERS, MEGAN MESSERLY and ARI HAWKINS report that the officials are bumping into each other — and gumming up negotiations.
— Progress report: 'Trump's three-headed negotiating team is often working at cross purposes, or at least that's how it seems to 11 foreign officials, business leaders and advisers on trade talks, who say they are receiving mixed messages from different departments, in what one person close to the talks described as a contest for Trump's loyalty.'
The story notes that the most experienced negotiator, Greer, is the farthest from Trump's ear.
→ Keep reading on the state of talks.
DRIVING THE DAY
TWO BECOMING FIVE — As Prime Minister CARNEY often says, you're either at the table or you're on the menu.
That brings us to the leaders' dinner that opened the NATO summit in The Hague last night, which no doubt offered many chewy discussion points, including TRUMP's convulsive peacemaking attempts with Iran and Israel.
Brussels Playbook author TIM ROSS sets the scene: 'Everyone's just hoping the U.S. president appreciated his evening among the gold chandeliers and frescos of the Dutch king's palace enough not to quit the alliance due to being, in general, just totally pissed at the state of the entire goddamn world.'
— Trump's main course: NATO defense spending.
— Amuse-bouche: Foreign Affairs Minister Anita Anand predicted an active discussion among the 32 NATO leaders, especially about the timelines on how the alliance's countries will meet the new 5 percent spending target. Canada just announced plans to reach the soon-to-be-outdated 2 percent benchmark.
— For starters: Driven by Trump's long-standing demand for allies to do more, NATO must now reach a consensus on how to get to 5 percent. The proposal allocates 3.5 percent to military spending and 1.5 percent to defense-related industry and infrastructure.
— Hmm, how about: 'It's not only a question of the amount — whether it is an additional 1.5 percent or an additional 3 percent overall,' Anand told POLITICO from The Hague. 'It's also a question of how you break it down.'
— More questions: 'Will there be flexibility in, about 1.5 percent? Will there be a mandatory percentage increase at certain points in time? Will there be increases incrementally, and will there be a review after certain timelines, say, in 2029 — one of the dates that is being floated?'
— In related news: The new NATO military spending target will require Canada to spend C$150-billion annually on defence-related priorities, Carney said Tuesday.
— Talk of the town: Spain looks poised to take the spotlight off Canada as one of NATO's biggest laggards. Carney's pledge to meet the 2 percent commitment appeared likely to get Canada off the hook this year. Now it seems certain given that calls for a carve-out from Spanish PM PEDRO SÁNCHEZ's have made his country the 'villain' of the summit.
→ NATO reads from POLITICO:
— 'The Trump summit': Rubio credits president for pushing NATO allies.
— Zelenskyy clings to NATO hopes as Trump meeting looms.
— Inside the air policing mission keeping NATO leaders safe.
— Trump plans to tout Iran strikes at NATO summit focused on European defense spending.
ON THE HILL
THE FINISH LINE — CARNEY's signature piece of legislation is on the agenda today as the Senate returns to action. The PM has promised C-5 will offset TRUMP's tariffs and that removing internal trade regulations will contribute C$200 billion to the Canadian economy.
Backed by Conservatives, the sweeping 'nation-building' bill cleared the House on Friday and is on track to become law by Canada Day — just as the prime minister vowed.
— Three more hurdles: Today in the Senate, the bill will be introduced. Senators will get the chance to debate the bill during second reading.
— Now what: The bill must pass three readings in the Senate before it can become law.
But it won't face a routine committee review.
— Crunch time: The Red Chamber is treating Bill C-5 as urgent legislation, as senators face political pressure to pass it by Friday before summer recess begins.
Senators pre-studied C-5 last week, taking time to question Internal Trade Minister CHRYSTIA FREELAND, Canada-U.S. Trade Minister LEBLANC and Crown-Indigenous Relations Minister REBECCA ALTY.
But if the bill hasn't passed third reading by Friday at 5:15 p.m., Senate Speaker RAYMONDE GAGNÉ will force a final vote.
— Also on deck: This week, senators are also expected to approve more than C$158 billion in government spending for the 2025–2026 fiscal year that ends March 31.
THE ROOMS THAT MATTER
— Prime Minister MARK CARNEY is at the NATO Summit where his Wednesday-morning agenda included meetings with New Zealand PM CHRISTOPHER LUXON and Estonian PM KRISTEN MICHAL.
He also attended a welcome by NATO Secretary-General MARK RUTTE and Netherlands PM DICK SCHOOF before a meeting of the North Atlantic Council. He has meetings lined up with KYRIAKOS MITSOTAKIS, the PM of Greece, and ALEXANDER STUBB, president of Finland.
He's scheduled to hold a media avail at 2:30 p.m. local time (8:30 a.m. in Ottawa).
— Energy Minister TIM HODGSON will deliver a keynote address and participate in a noon hour fireside chat with the Toronto Region Board of Trade.
— AI and Digital Innovation Minister EVAN SOLOMON will be at the Vector Institute (Schwartz Reisman Innovation Campus in Toronto) to make a 1 p.m. announcement in support of AI-driven health care solutions.
— Defense Minister DAVID MCGUINTY is in Latvia.
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MORNING MUST-CLICKS
— 'Carney doesn't appear to have a grand theory of public service reform — but change is happening anyway,' KATHRYN MAY writes in Policy Options. 'The system is being reshaped piece by piece, not by design, but by the demands of what he's trying to get done.'
— And ROBERT FIFE of the Globe reports: 'Carney ready to dismiss top bureaucrats unable to meet his expectations, Liberal insiders say.'
— POILIEVRE takes questions on a special edition of the 'Hub Dialogues' with SEAN SPEER.
— 'As aggressive as Carney has been to date—zeroing out the carbon tax rate, leading the new Parliament with a personal income tax cut bill, promising to meet the NATO target of 2 percent of GDP on military spending by March—from here on out, things will only get tougher,' DAVID MOSCROP writes in The Walrus.
— Liberal MP NATE ERSKINE-SMITH is on the latest episode of 'The Backbench.'
— MARIE WOOLF of the Globe reports that child-safety advocates and technology experts are urging the federal government to bring back the online harms bill, but to split it in two to expedite measures that protect children from abuse.
PROZONE
Our latest Pro PM Canada subscriber newsletter: Canada and NATO's new target.
Other headlines for Pro subscribers:
— Gavi's vaccine summit faces funding test as US cuts, defense spending loom.
— Saudis, US drive strife inside global climate science body.
— U.S. agencies reported over 2,000 use cases of AI.
— Fears grow EU will cave on tech rules amid Trump pressure.
— European Commission threatens to kill forest protection law.
— As Trump fumes, Powell tells lawmakers he's in no rush to lower rates.
PLAYBOOKERS
Birthdays: Finance Minister FRANÇOIS-PHILIPPE CHAMPAGNE is 55 today.
Former Sen. ROMÉO DALLAIRE, ROBERT ROSENFELD of GreenShield and former MP LINDA FRANCIS DUNCAN also celebrate today.
And HBD to the amazing WILLA PLANK, an editor of Canada Playbook.
Movers and shakers: MOHAMMAD KAMAL is director of communications for Treasury Board President SHAFQAT ALI.
Spotted: Maine Gov. JANET MILLS, on a three-day charm offensive to Canada. CP has the details.
Canada's SHAI GILGEOUS-ALEXANDER, showed up to the Oklahoma City Thunder's NBA championship parade with a Canadian flag around his waist … OKC Mayor Mayor DAVID HOLT, naming July 30th after the athlete from Hamilton, Ontario.
Noted: 'Run Like A Girl,' a memoir by former Environment Minister CATHERINE MCKENNA will be published Sept. 23 in North America with Sutherland House.
Lobby watch: Marinvest Energy Canada posted a June 17 meeting with Conservative Party Leader PIERRE POILIEVRE and Conservative MP and Quebec Lieutenant PIERRE PAUL-HUS … Indigenous Water Partnership posted a June 23 meeting with Conservative MP BILLY MORIN … Environmental Defense Fund reported a June 23 meeting with Liberal MP ERIC ST-PIERRE.
Media mentions: The Radio Television Digital News Foundation announced its scholarships for the 2024-2025 academic year.
TRIVIA
Tuesday's answer: In 1955, GEORGE IGNATIEFF and LESTER B. PEARSON participated in a drinking contest with the Soviet leader NIKITA KHRUSHCHEV where the Canadians downed 18 shots of vodka.
Props to BRANDON WALLACE, GREG LYNDON, RODDY MCFALL, TOBY HARPER-MERRETT, JANE GRIFFITH, ANDREW SZENDE, SEAN SUNDERLAND, ALEXANDER LANDRY, JOSEPH CRESSATTI, RONALD LEMIEUX, ASHLEY THOMSON, SHAUGHN MCARTHUR, JOHN MATHESON, JOANNA PLATER, ELIZABETH BURN, RAY DEL BIANCO, MARC SHAW, PAUL PARK, GARY ALLEN, JOSEPH PLANTA, J. ROLLAND VAIVE, JOHN PEPPER, ADAM SMITH, CHRIS RANDS, MARCEL MARCOTTE and JEFFREY VALOIS.
Props +1 to EVAN CATHCART.
Wednesday's question: Who said the following? 'I found the biggest challenge was the Ottawa Press Gallery. The people who cover politics all the time were the worst. Regional journalists were not so much of a problem. … But the Ottawa Press Gallery really feels like they own the politics.'
For bonus marks: Tell us how your answer connects to this date in history.
Answers to [e-mail]
Writing tomorrow's Playbook: MICKEY DJURIC and MIKE BLANCHFIELD.
Canada Playbook would not happen without: Canada Editor Sue Allan, editor Willa Plank and POLITICO's Grace Maalouf.