Canada’s prime minister calls election amid trade conflict with US

TORONTO (ICIS)–Canada’s Prime Minister Mark Carney on Sunday called an election, to be held on 28 April.

Carney, who on 14 March took over from Justin Trudeau, said he and his Liberal-led government needed a strong mandate from voters to confront the challenges posed by the US administration under President Donald Trump.

“We are facing the most significant crisis of our lifetimes because of President Trump’s unjustified trade actions and his threats to our sovereignty,” Carney said.

“President Trump claims that Canada isn’t a real country,” Carney said, adding: “He wants to break us, so America can own us.”

Trump has repeatedly said that Canada was not a viable country and should join the US as its 51st state.

In response to this challenge, Canada needed “to build a strong economy and a more secure Canada”, Carney said.

The Liberals would, if re-elected, act quickly to diversify trade, remove interprovincial trade barriers, and build out energy and other infrastructure across the country, he said.

CARBON PRICING
Carney already suspended the federal consumer carbon tax but said that the government would retain and improve federal industrial carbon pricing as the most effective measure to control emissions.

Industrial carbon pricing is seen as key in attracting investments in low-carbon projects, such as Dow’s Path2Zero petrochemicals complex under construction in Alberta.

The opposition Conservatives, who are running neck and neck with the Liberals in opinion polls about the election, announced last week they would abolish both the consumer carbon tax and federal industrial carbon pricing.

Trade group Chemistry Industry Association of Canada (CIAC) supports industrial carbon pricing as a tool to encourage companies to reduce emissions in a cost-effective way, but the group has suggested a review to ensure that pricing levels and rules are still appropriate.

In response to the tariff challenge, CIAC wants the government to implement pro-growth tax and regulatory policies; strengthen the country’s infrastructure; improve labor relations to avoid supply chain disruptions; and help diversify and expand Canada’s trade into new markets beyond North America.

In chemicals and plastics, the tariff conflict affects about Canadian dollar (C$) 115 billion/year (US$80 billion/year) in US-Canada chemicals and plastics trade, according to CIAC.

($1= C$1.43)

Please also visit US tariffs, policy – impact on chemicals and energy

Thumbnail photo of Canada’s flag; source: Government of Canada