Multiple Challenges Await Canada’s Carney

Canadian Prime Minister Mark Carney celebrated election victory on Tuesday, however he admits “daunting” challenges await, together with dealing with Donald Trump and reshaping the economic system.

“There may be going to be a really brief honeymoon,” Marci Surkes, a former advisor to Carney’s predecessor Justin Trudeau, instructed AFP.

Carney acknowledged in a victory speech that the approaching months can be tough, however mentioned he had the expertise to guide Canada via tumultuous instances.

“It’s a time to be daring to fulfill this disaster,” he instructed a cheering crowd in Ottawa after the Liberal Get together’s comeback in opposition to the Conservatives.

“The challenges forward are daunting,” he mentioned.

“Large adjustments, like those we’re experiencing, are at all times worrying. We’ve got a protracted solution to go, however I’ve confidence, I’ve confidence in you, I’ve confidence in Canada.”

Carney will first have to determine the best way to take care of threats from the mercurial American president, who marked election day by once more insisting Canada ought to turn into the 51st US state.

And he additionally must roll out measures to rework the Canadian economic system to make it much less reliant on america, its largest however not dependable buying and selling associate.

The nation of 41 million individuals sends three-quarters of its exports to america, and tariffs imposed by Trump — significantly on the automotive and metal sectors — are already damaging the economic system.

Since Trump “is making an attempt to essentially restructure the American economic system,” Canada must “reinvent” its personal, Carney declared through the marketing campaign, warning that the time for shut cooperation with america was over.

Carney has already signaled the necessity to take away commerce obstacles between Canadian provinces and to strengthen ties with Europe — the place he made his first international journey after changing Justin Trudeau as prime minister in March.

However these issues can’t be solved rapidly, and Canada faces “big vital infrastructure challenges when it comes to having the ability to even transfer our commodities to markets,” Surkes famous.

Opening new commerce corridors will “want appreciable funding” and represents a “generational problem,” she mentioned.

Whereas looking for new markets is laudable, it does not provide “fast fixes” to Canada’s commerce woes, mentioned Steve Verheul, Canadian deputy minister of commerce throughout Trump’s first time period.

For him, restoring free commerce with Washington can be paramount: “We want them. They want us.”

Trump and Carney introduced earlier than the election that the 2 sides would meet to debate commerce relations as early as Could.

They’re additionally anticipated to fulfill in Western Canada in June for the G7 summit.

It’ll take a “titanic effort” to resolve the commerce struggle, believes Sandra Aube, a former Liberal advisor who served as Overseas Affairs Minister Melanie Joly’s chief of employees till 2022.

“There’ll should be important reengagement in any respect ranges with the US authorities to see what Canada can do,” she mentioned.

Rethinking Canadian protection can also be excessive on Carney’s agenda.

He has unveiled an formidable program to say Canada’s sovereignty, significantly within the Arctic, and decreasing dependence on allies, notably america.

“This is a component linked to the economic system as a result of main investments of billions of {dollars} will profit the Canadian manufacturing sector and protection,” Aube mentioned.

On the identical time, the prime minister — who might have the help of small events to safe a parliamentary majority — will be unable to disregard on a regular basis points akin to excessive prices of residing and a housing disaster.

“These points are actual and urgent,” mentioned Surkes, including Carney might want to appoint “new blood” to his cupboard to show that he’s extra centered on enterprise and the economic system than his predecessor.