THE REAL ECONOMY
Canadas conundrum on trade
How to move past its dependence on the U.S.
THE REAL ECONOMY | July 19, 2021
Ever since Joe Biden won the U.S. presidential race and his administration took over in January, Canadian officials have held out hope for an easing in trade tensions with the United States. Whether hoping for a broad reduction in tariffs imposed under Biden’s predecessor, Donald Trump, or a reentry by the United States into what is now known as Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Canada has kept a keen eye on the Biden administration’s approach to trade.
But six months into the Biden presidency, the results are coming into view. Not only have tariffs stayed in place, but in the case of lumber there has been an increase. It also appears less likely that the United States will seek to rejoin the CPTPP.
In a development hard to imagine even five years ago, China is now seeking to join the CPTPP, according to recent reports from Bloomberg. It’s surprising because a major reason for the agreement was to counter China’s rising influence.
It all leaves Canadian officials looking at the landscape on trade with a certain trepidation. Canada and the United States, after all, have generally shared a robust and balanced trading relationship that reflects a high degree of economic integration.
Contact your trusted Stark & Marsh Advisor or an office close to you.
Source: RSM Canada LLP
Used with permission as a member of RSM Canada Alliance
Standard legal disclosure:
RSM Canada Alliance provides its members with access to resources of RSM Canada Operations ULC, RSM Canada LLP and certain of their affiliates (“RSM Canada”). RSM Canada Alliance member firms are separate and independent businesses and legal entities that are responsible for their own acts and omissions, and each are separate and independent from RSM Canada. RSM Canada LLP is the Canadian member firm of RSM International, a global network of independent audit, tax and consulting firms. Members of RSM Canada Alliance have access to RSM International resources through RSM Canada but are not member firms of RSM International. Visit rsmcanada.com/aboutus for more information regarding RSM Canada and RSM International. The RSM trademark is used under license by RSM Canada. RSM Canada Alliance products and services are proprietary to RSM Canada.
Tax Content Disclaimer:
The following disclaimer must be used in addition to the RSM Canada Alliance legal disclosure when repurposing tax content from RSM.
The information contained herein is general in nature and based on authorities that are subject to change. RSM Canada LLP guarantees neither the accuracy nor completeness of any information and is not responsible for any errors or omissions, or for results obtained by others as a result of reliance upon such information. RSM Canada LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein. This publication does not, and is not intended to, provide legal, tax or accounting advice, and readers should consult their tax advisors concerning the application of tax laws to their particular situations. This analysis is not tax advice and is not intended or written to be used, and cannot be used, for purposes of avoiding tax penalties that may be imposed on any taxpayer.