AUS
NZ
UK
CA
USA
IND
Summary
- Trudeau hopes for a smooth transition during the US election 2020, and says Canada is prepared for potential outcomes and eventualities.
- President Trump imposed 10 per cent tariff on raw aluminum imports, and this time Canada retaliated swiftly with C$3.6 billion in counter tariffs
- Joe Biden vows to relax immigration curbs, reform the visa system to allow for more contributions from immigrants to the American economy
Watching the US election 2020 unfold, Canadian Prime Minister Justin Trudeau says Canada is prepared for potential outcomes and is hoping for a smooth transition during the US election 2020. Current president Donald Trump, who’s been questioning the integrity of the mail-in ballots and voting system, has threated to challenge the results in the US Supreme Court in case of a loss.
In June 2020, the White House evoked ire of hundreds of Canadians working across the border in the US with a freeze imposed on issuing temporary work visas in several classes. This brought about a fear among Canadians that if the Trump government is allowed another four years of power, then work restriction on non-immigrant and immigrant work visas would escalate.
On the other hand, Democratic presidential nominee Joe Biden vows to relax immigration curbs, reform the visa system to allow for more contributions from immigrants to the American economy, expand the number of high-skill visas granted and review country-by-country limits on employment visas.
Impact of Trump or Biden’s win on Canada-US trade and economy
Canada is the largest trading partner of the US and trade negotiations are a constant in their cross-border relationships. Will the new administration look at renegotiating Canada-United States-Mexico Free Trade Agreement or CUSMA again? Amid Covid-19 pandemic, President Trump imposed 10 per cent tariff on raw aluminum imports, and Canada retaliated swiftly with C$3.6-billion counter tariffs.
Even as the US-Canada border remains closed with exception granted for trade and commerce across the border, their relationship continues to remain strained. Trump’s relationship with Canada on trade has been more of imposing tariffs, restrictions, tense language, and threats of stronger action to keep Canadian businesses on their toes.
Earlier in 2020, the North American Free Trade Agreement (NAFTA) was replaced by the CUSMA. Under Chapter 32 of the new agreement, signatories in the deal are required to give notices to other countries if they intend to negotiate a free trade agreement (FTA) with a non-market country, that is not one among the three countries and not mentioned in the FTA.
Biden’s trade promises include bringing back critical supply chains and reduce interdependence on other nations, tighten domestic rules, and work with allies to modernize trade rules and regulations. He calls the policy as “trickle-down economics” which does not help an average worker. If Biden gets elected, then elimination of outstanding Trump tariffs is anticipated. The anti-trade rhetoric that now exists in the United States, will likely become a bipartisan issue with Biden coming to power, and focus will shift towards finding paths together to resolve a problem, rather than “attack the ally” or “take down the WTO” approach.
Regardless of who wins in the US election 2020, Trudeau vows to work alongside the U.S administration, with the American government and the American people.
