REGINA, Sask. — As the United States Senate symbolically votes to strip the president of his tariff powers, Canada officially pivots toward the European Union with a major trade summit in Ottawa. We also explore the push for overseas diversification with Apertera CEO Gary Kalaci, who explains why prairie exporters are increasingly eager to end their reliance on the American market.
Podcasts are available now on GX94, Yorkton, or on 620 CKRM, Regina, hosted by Steven Wilson. Or read the transcript below:
Steven Wilson — Welcome to Trade Dispute: Impact on the Prairies. I'm Steven Wilson.
The United States Senate delivering a massive domestic rebuke to President Donald Trump over the cross-border trade war. In a 50-46 vote yesterday, the Senate moved to revoke the president's executive authority to impose the Section 338 tariffs against Canada.
Four Republicans crossed the aisle to vote against the White House in a desperate bid to save border state economies. However, the vote is largely symbolic.
House Republican leadership has already implemented rules to prevent the resolution from reaching a vote in the lower chamber.
While Washington battles internally, Canada is officially cementing its pivot to Europe. Prime Minister Mark Carney hosted European Commission President Ursula von der Leyen on Thursday, officially launching the Alliance for the Future.
Pointing directly to the dispute with Washington, Carney referred to Canada as the most European of non-European countries.
Canadian cabinet ministers and European commissioners held a sector-specific business forum to establish closer cooperation on trade, defense, and critical minerals.
While the European Union has so far hesitated to grant Canada formal associate membership, trade experts say American hostility has left a political window wide open for Canada to dramatically reduce its reliance on the United States economy.
That pivot is also driving a major domestic shift, with Ottawa unveiling its first comprehensive national security strategy in more than 20 years yesterday.
The trade war is also continuing to dominate the final days of the American midterm election campaigns.
Political analysts say a growing war of words has erupted between former President Barack Obama and President Trump regarding the economic damage caused by the tariffs.
Here at home, Economic Reporting warns that the Bank of Canada's decision to hike interest rates to fight tariff-induced inflation will create immediate domestic casualties.
Analysts say higher borrowing costs will drag down an already slumping housing market, further squeezing Canadian consumers.
Meanwhile, internal friction is threatening Canada's unified trade front.
Quebec Premier Paul Saint-Pierre Plamandon boycotted the European Union summit in Canada, claiming his province was sidelined by the federal government.
Former NDP leader Thomas Mulcair blasted the Quebec Premier, telling him to stay home.
Prairie business leaders say the infighting is highly concerning, warning that Western exporters cannot afford internal political gridlock while fighting for European market access.
That push for overseas diversification is gaining widespread traction across the Prairies.
Gary Kalaci is the CEO of Apertera, a professional translation and localization service.
A new study commissioned by the firm reveals nearly two-thirds of respondents believe Canada should decrease its trade reliance on the United States.
Kalaci says a heavy reliance on a single trading partner is always an economic liability.
Gary Kalaci — When a company buys another company, they look at their client diversification and they see overreliance on a particular client. They see that it's a risk factor in that acquisition. It's the same thing economically for our own manufacturing producers as a country, right? The more options we have, the more that percentage varies so it's not reliant just on one client, the better it is for us.
We need to make the economics make sense, and this is where the combination of business and government comes in, but the fact that we need to pursue it and we need to pursue it with some consistency, not get too comfortable, is something that we've always encouraged, and not just because we're in the translation industry, but because the world and the geopolitics of it will always be changing, and us thinking forward in that nature can only be better for our country and our exports, frankly.
Steven Wilson — Kalaci says the survey results were surprisingly strong in Western Canada, with 73 per cent of respondents in Saskatchewan and 78 per cent in Manitoba supporting a shift toward European trade.
He says localizing marketing materials and legal contracts is a critical step for Prairie manufacturers and agribusinesses looking to close overseas deals.
Gary Kalaci — So, a variety of reasons, Steven. If you think about most markets, even though English is an international language, a lot of people will tend to do searches on the internet to even find a product or service in their native language. It's far easier for them to absorb information if it's in their native language, even though they may understand English. Research shows that people tend to buy more when products are localized or services are localized in terms of their offering. In some markets, it will matter more than others. There tend to be some countries in Europe that where English training is far better than others, but I think, generally speaking, that's a good approach. The investment is rather small compared to the return you would have by approaching people in their localized way. It's cultural, respectful, and easier to understand.
Steven Wilson — When it comes to strict European Union compliance laws, Kalaci says Prairie producers need to work together.
He says agricultural sectors should pool their resources to cover the cost of legal and translation barriers, making it cheaper for the entire industry to break into new markets.
We will keep a close eye on the American midterms this weekend as the trade war continues to shape the political landscape south of the border. I'm Steven Wilson. Have a great weekend, and thank you for listening to Trade Dispute: Impact on the Prairies.
Listen weekdays at 9 a.m. on 620 CKRM and GX94 for new installments of Trade Dispute: Impact on the Prairies.
