11 hours ago
A new treaty could stabilize Canada's relationship with the U.S.
Thomas d'Aquino is the founding CEO of the Business Council of Canada and author of Private Power Public Purpose - Adventures in Business, Politics and the Arts.
Prime Minister Mark Carney has rightfully and boldly laid out a vision for Canada to achieve greater economic and security resilience in the face of an 'existential threat' from the United States. This demands a posture of greater independence from our southern colossus. It also requires a high degree of sang froid and diplomatic finesse in protecting Canada's national interest. The hard reality is that we cannot fully decouple ourselves from our economic and security interdependence with the Americans even as we vigorously pursue new partnerships around the world. So how best can we achieve a higher degree of certainty in our bilateral relationship while having to come to terms with a transactional president?
Ever since Mr. Carney and President Donald Trump conducted their first telephone conversation on March 28 and spoke of a comprehensive economic and security package – conversations that have been since ongoing – I have been mulling the idea of a bilateral treaty binding our two countries. Radical? Counterintuitive? By all means. But here's why it merits consideration.
According to Article VI of the U.S. Constitution, '...all the authority of the United States, shall be the supreme law of the land.' A Canada-United States Economic and Defence Treaty, endorsed by two-thirds of the U.S. Senate, would give the bilateral relationship a higher degree of formality and recognition. Of far more consequence than an agreement or pact, it would also provide Canada with more certainty during and after the Trump presidency, assuming, of course, that the terms of the treaty would be advantageously negotiated by Canada.
From a Canadian perspective, what might be a plausible pitch to the President? I have tried to answer this question by imagining what I would say in the opening of the conversation.
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Mr. President, one of the most important elections in Canadian history has just concluded. Buoyed by a surge of patriotism not seen since the Second World War, our citizens have affirmed their love of country and confidence in our future as a proud and independent people. Our confidence is rooted in the knowledge that we possess powerful democratic institutions, a respected judiciary, an enormous land mass rich in resources and surrounded by three oceans, and one of the most diverse and skilled populations on earth. We have also been blessed to share a continent with our long-time friend and ally, the United States of America.
In a conversation you and Mr. Carney had on March 28, it was agreed 'to begin comprehensive negotiations about a new economic and security relationship immediately following the election.' The Canadian election now behind us, here are some preliminary ideas on how new life can be breathed into this refreshed relationship.
You are well aware of the highly integrated nature of our two economies. It has yielded great mutual benefits in terms of growth and jobs. As a businessman, you appreciate the staggering achievement of our two countries exchanging nearly US$1-trillion annually in goods and services. We are indispensable customers of each other. You are also well aware of our mutual commitment to the defence of North America. In the troubled and dangerous world, Canadians, and I believe, Americans, would welcome rock-solid, mutually beneficial commitments to our common future.
With this in mind, I am interested in exploring with you the negotiation of a historic Canada-United States Economic and Defence Treaty that would benefit from your leadership and the support of Canada's Parliament and the Congress of the United States. The cornerstones of this treaty would be the affirmation of our eternal friendship, the respect of our territorial sovereignty, and our mutual embrace of the rule of law, including the binding resolution of disputes. The focus of the treaty would be on joint approaches to competitiveness, economic development, and defence and security cooperation, keeping in mind the fundamental principle of reciprocity that you are championing - reciprocity beginning with the immediate clearing away of tariffs between our two countries.
The treaty would:
The treaty is not meant to be a substitute for the United States- Mexico-Canada Agreement (USMCA) – an initiative that you took the leadership in successfully negotiating in your first term. A renegotiated USMCA will no doubt continue to serve all three countries, especially in areas where our continental supply chains are closely integrated.
In proposing Canada-United States cooperation beyond the USMCA, Canada is mindful that the sovereignty of the United States and Canada must be respected. Canadians and Americans would expect nothing less. The treaty would acknowledge the independence of each of our countries in the domains of foreign policy and international commerce while respecting the long tradition of consultation between our two governments.
As for China, I appreciate your concerns about the failure of the Chinese government to adhere to World Trade Organization liberalization protocols and to respect the principles of trade reciprocity. Canada will work with like-minded allies to press for reforms within China to alleviate these imbalances.
In the defence domain, there is overwhelming public support in Canada for bolstering our armed forces. In addition to our new F-35 fleet, we will move forward on new submarine and icebreaker capability as well as surface combat vessels, artillery, radar, and drones. Canada's commitment to the North Atlantic Treaty Organization (NATO), of which we are a founding member, is unequivocal. Mr. Carney has said Canada will meet its 2 per cent of GDP expenditure in defence spending this year and has expressed interest in partnering on the U.S. anti-missile defence shield. Canada's involvement would be consistent with our long-time commitment to NORAD and to protecting the continent's northern approaches from potential hostile attack.
Mr. President, each of your predecessors in modern times has spoken of the uniqueness of the Canada-United States relationship. Among the most memorable are these words from John F. Kennedy: 'Geography has made us neighbours. History has made us friends. Economics has made us partners. And necessity has made us allies.' In the troubled and dangerous world of today, these truths resonate more than ever. Let's seize this opportunity and shape a new and exciting chapter in the historic relationship between our two peoples. The result will be a stronger Canada and a stronger America.
