What Trudeau’s win means for the global economy & Canada’s multilateralism

• According to the White House, President Joe Biden called Trudeau and both leaders stressed on working in tandem to fight the pandemic and provide the much-needed support to both economies. The US has moved from the Trump-era to the Biden-style of diplomacy. Trump calling the Canadian PM ‘two-faced’ during the NATO summit in December 2019 and the tense relationship between the two leaders is now a thing of the past.

• Canada has pledged ambitious climate change goals to fight global warming. The Liberals’ platform even had a mention of working with the US and the EU on carbon adjustments. The Liberal party says it will work with the US administration to modernize the North American Aerospace Defence Command.

• Another major concern is providing fiscal and monetary support. In Canada, the federal government and the Bank of Canada have been infusing liquidity in the market through fiscal spending and low policy rates. The US has also resorted to similar measures. The Bank of Canada is well aware of the Fed’s taper talks, and any rate hike in the US can compel the former to rethink its liquidity infusing approach.

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