President Trump has made reducing bilateral trade deficits the heart of his trade policy. While most economists believe that trade deficits are more the result of macroeconomic factors such as savings and investment imbalances, President Trump has criticized countries with trade surpluses with the United States. Canada is no exception: the President says significant trade deficits with his northern neighbour and holds NAFTA responsible for the imbalance. Meanwhile, Canada claims to have a trade deficit with the United States. So, who`s right? The answer, as with many economic circles, lies in the way it is counted. The United States establishes two types of statistics on trade in goods. The measure that covers the largest volume of trade is the overall measure of overall import/export. Thus, all products entering the country (general imports) and all departures (total exports) are routed to the country. This measure covers all products crossing the border, either produced in the country or transferred to another country through its ports, without being subject to it. With respect to trade between Canada and the United States, this ratio has traditionally had a smaller deficit. In 2017, the United States recorded a deficit of $22.7 billion relative to Canada as a result of the overall import/export transaction. Alternatively, the domestic import/export metric measures only goods consumed or produced in the United States.
This figure traditionally has a larger deficit, with a deficit of $64.8 billion over Canada in 2017. The discussions that took place above focused solely on trade in goods. The United States had a constant services surplus with Canada of $25.4 billion in 2017. Combined with the overall metric of imports/exports, the United States had a trade surplus with Canada of $2.8 billion in 2017 for goods and services; At the same time, CBP, the agency responsible for implementing the treaty in the United States, created the USMCA Center to coordinate the implementation of the contract by CBP in the United States. According to CBP, the agreement modernizes “certain NAFTA provisions that reflect the evolution of 21st century technology and supply chain” and “provides more efficient trade, greater implementation and more economic opportunities for North America.” The USMCA calls for “new approaches to rules of origin, access to agricultural markets, digital trade and financial services” and aims to protect workers` rights in key industries and strengthen the protection of intellectual property rights. But it has another broader objective: to reduce the imbalance in U.S. international trade, with various trading partners and around the world. As part of that policy, Mr. Trump has also launched a trade war against China, which has already hurt businesses and could dampen global economic growth. Faced with the fatigue with Harper and the malaise of the economy, many voters would have justified their decision by choosing the party that had the best chance of defeating the Conservatives. The anti-Harper vote was mainly split between Mr. Trudeau`s Liberal Party and the New Democratic Party (NDP) between Thomas Mulcair.
The Liberal Party – long known as the “natural party in power” for its dominance in the 20th century – performed its worst time in 2011, when it occupied a distant third and was supplanted by the NDP as the main left-wing party in Parliament. Some analysts have even estimated that the party could disappear because of the polarization of Canadian politics between the Conservatives and the NDP.3 The election of Trudeau – son of former Prime Minister Pierre Trudeau (1968-79, 1980-84) – as party leader helped the Liberals regain support, but many Canadians felt the 43-year-old was absent.