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Presidents and prime ministers: How cross-border personality clashes could play out

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WASHINGTON – President John F. Kennedy stood before Canadian lawmakers elucidating the important relationship between the two countries: “Geography has made us neighbours. History has made us friends. Economics has made us partners.”

“And necessity has made us allies,” Kennedy said in a 1961 address to Parliament.

But behind the scenes, the relationship between the charismatic Kennedy and then-prime minister John Diefenbaker was toxic.

With the looming United States election, the future of who will be at the helm of the bilateral relationship remains unclear, but Canada cannot escape the geopolitical pull of its closest neighbour.

While some presidents and prime ministers have been on friendly terms, the shared geography and history hasn’t stopped clashes between others.

“We have a long history of presidents and prime ministers hating each other’s guts… and yet the system works,” said Aaron Ettinger, a political science professor at Carleton University.

Experts say incompatible personalities won’t irreparably harm the relationship, but it can make it harder for Canada.

“It’s very difficult to operate when you have outright antagonism between the leaders — and that is less a function of ideology and more a function of personality,” said Laura Dawson, an expert on Canada-U. S. relations and the executive director of the Future Borders Coalition.

That became clear during the first Trump administration when the former president scrapped the North American Free Trade Agreement. Negotiations of it’s replacement, the Canada-U.S.-Mexico Agreement, were marked by public spats between Prime Minister Justin Trudeau and former president Donald Trump.

Trump called Trudeau “weak” and “dishonest” after the prime minister criticized the president’s 2018 tariff actions at the G7 summit in Quebec.

Robert Lighthizer, Trump’s trade representative, recounted in his book that U.S.-Canada relations were “at their lowest ebb since the failed American invasion of Upper Canada during the War of 1812.”

The following year there was another blow-up when Trudeau and other NATO leaders appeared to be on video talking about a Trump press conference. The former president called the prime minister “two-faced.”

While the relationship between the leaders was publicly rocky, behind the scenes CUSMA was successfully negotiated. Deputy Prime Minister Chrystia Freeland called the agreement a “victory for all Canadians,” and experts say it was more moderate than Trump originally threatened.

Whoever takes the White House will be in charge during trade pact’s 2026 review.

Trudeau is a political veteran now, Dawson said, and is more prepared for a possible second Trump administration.

“We know that Trump-Trudeau is not a good fit,” Dawson said. “But I’m sure that Trudeau will figure out a way to make it work.”

Most experts say Kamala Harris’ personality would be a better match with Trudeau. It’s been reported they already have a good relationship and many of their policy goals align. He originally ran on “sunny ways” and she kicked off her campaign with “joy.”

The vice-president also spent part of her youth living in Canada, although observers say the impact of her teenage years in Montreal is probably overstated.

“Harris would obviously be easier for probably anyone to get along with,” Dawson said. “But getting along only goes so far.”

Harris has been campaigning on her vote against CUSMA, saying it didn’t do enough to protect U.S. workers, and is expected to follow the Biden administration’s Buy American procurement rules.

There’s another outcome to consider: a change in Canadian leadership. A general election must be held by October next year, but it could come sooner if the Liberals lose the confidence of the House.

The Conservatives have long held a lead in the polls amid high inflation, an exodus of Liberal ministers and uncertainty over Trudeau’s political future.

“We have a whole lot of turnover in the works coming up in the next two years between Canada and the United States,” Ettinger said. “And it’s possible that we have two leaders who have never met one another.”

It’s not clear how Conservative Leader Pierre Poilievre would get along with either presidential candidate.

Ivan Ivanov, an assistant professor at the University of Ottawa, said Poilievre “is a professional communicator.” The expert in public relations and crisis management said the Conservative leader can be combative — which could hurt or help the bilateral relationship — but it plays well among Canadian voters.

During President Joe Biden’s state visit to Canada last year he met with Poilievre and they discussed Canadian exemptions to Buy America rules, national defence interests and other issues. A photo shared on Poilievre’s social media shows the leaders shaking hands.

However, Ettinger said he doesn’t think we can “glean much about how he personally will interact with other leaders on the international stage.”

“He’s a complete cipher.”

Poilievre’s promises share some insight. He pledged to match American tariffs on Chinese-produced electric vehicles a few weeks before the Liberal government took action this summer and promised to push Americans on the longstanding softwood lumber dispute.

Poilievre has also been known to use slogans in the Republican lexicon. For example, Poilievre said he will “replace woke culture with warrior culture” in the military and that “biological males” should not be in women’s sports and change rooms — both talking points were included in multiple speeches at the recent Republican National Convention.

But that doesn’t necessarily make him the better match for Trump, Dawson said.

“We might think that a Poilievre-Trump pairing would be better because he’s got a more ideological fit,” Dawson said.

“But we know that Trump is not a traditional Republican at all.”

This report by The Canadian Press was first published Oct. 23, 2024.

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A look at what people are saying about the Bank of Canada’s rate decision

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OTTAWA – The Bank of Canada cut its key policy interest rate by 50 basis points on Wednesday to bring it to 3.75 per cent. Here’s what people are saying about the decision:

“High inflation and interest rates have been a heavy burden for Canadians. With inflation now back to target and interest rates continuing to come down, families, businesses and communities should feel some relief.” — Tiff Macklem, Bank of Canada governor.

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“Activity in Canada’s housing market has been sluggish in many regions due to higher borrowing costs, but today’s more aggressive cut to lending rates could cause the tide to turn quickly. For those with variable rate mortgages – who will benefit from the rate drop immediately – or those with fast-approaching loan renewals, today’s announcement is welcome news indeed.” — Phil Soper, president and CEO of Royal LePage.

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“This won’t be the end of rate cuts. Even with the succession of policy cuts since June, rates are still way too high given the state of the economy. To bring rates into better balance, we have another 150 bps in cuts pencilled in through 2025. So while the pace of cuts going forward is now highly uncertain, the direction for rates is firmly downwards.” — James Orlando, director and senior economist at TD Bank.

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“The size of the December rate cut will depend on upcoming job and inflation data, but a 25 basis point cut remains our baseline.” — Tu Nguyen, economist with assurance, tax and consultancy firm RSM Canada.

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“Today’s outsized rate cut is mostly a response to the heavy-duty decline in headline inflation in the past few months. However, the underlying forecast and the Bank’s mild tone suggest that the future default moves will be 25 bp steps, unless growth and/or inflation surprise again to the downside.” — Douglas Porter, chief economist at Bank of Montreal.

This report by The Canadian Press was first published Oct. 23, 2024.

The Canadian Press. All rights reserved.



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BoC delivers half percentage point rate cut, says it now must keep inflation at 2%

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OTTAWA – The Bank of Canada delivered a supersized interest rate cut Wednesday in response to the recent decline in inflation, bringing its key policy rate down by half a percentage point.

With annual price growth now around two per cent, the central bank says its job has shifted from lowering inflation to maintaining it around the inflation target.

“We took a bigger step today because inflation is now back to the two per cent target and we want to keep it close to the target,” Governor Macklem said in his opening statement.

Canada’s inflation rate fell to 1.6 per cent in September, solidifying forecasters’ expectations for a larger rate cut. Bigger cuts mean the rate can be lowered faster.

Wednesday marked the central bank’s fourth consecutive interest rate cut since June. Its policy rate now stands at 3.75 per cent, down from a height of five per cent.

The Bank of Canada attributes the slowdown in price growth to shelter price inflation easing, supply outpacing demand in the economy and global oil pricing falling.

It’s now forecasting inflation will remain around the two per cent target throughout its projection horizon, which extends to 2026.

High interest rates have sent a chill through the Canadian economy, slowing growth and loosening the labour market.

The central bank says in its monetary policy report that while layoffs have remained stable, businesses have pulled back on hiring, which has disproportionately affected young people and newcomers.

As interest rates continue to come down, the Bank of Canada is projecting economic growth to pick back up in 2025 and 2026.

Macklem said the central bank expects cutting its key interest rate further, so long as the economy evolves in line with its forecast.

“High inflation and interest rates have been a heavy burden for Canadians. With inflation now back to target and interest rates continuing to come down, families, businesses and communities should feel some relief,” Macklem said.

The Bank of Canada’s next interest rate announcement is scheduled for Dec. 11.

The Canadian Press. All rights reserved.



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Ontario government engineers to withdraw services from Highway 413, Bradford Bypass

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TORONTO – A group of professional engineers plan to soon withdraw services from key Ontario infrastructure projects Highway 413 and the Bradford Bypass as part of a bargaining dispute with the province.

Members of the Professional Engineers Government of Ontario, which represents more than 600 professional engineers and land surveyors who work for the province, started a work-to-rule campaign earlier this month.

Members’ earnings have fallen so far behind that they sometimes earn half of what people in similar positions at municipalities make, their bargaining association said. They are behind the market by 30 to 50 per cent, said president Nihar Bhatt.

So far no meaningful progress has been made in bargaining with the Treasury Board Secretariat even though the engineers have been without a contract for 20 months, Bhatt said. He did not give a specific percentage increase he is looking for but said it is “significant.”

“This bargaining is just the culmination of a decade long of talks on this issue, and suddenly, when they realize how far behind the market they are, they’re like, ‘Oh, these numbers are, like, really big,'” Bhatt said.

“Yeah, they are because you ignored it for a decade, and this is where we are. So that’s the problem and the infrastructure agenda of the province, whether it be new stuff or existing, both need to be overseen by people who know what they’re doing.”

The engineers have been engaging in a work-to-rule campaign, which includes not doing unpaid overtime or working outside of their set hours, but will now be escalating their job action.

Starting in the next few days, a small group of engineers will stop working on the two highway projects that are loudly championed by Premier Doug Ford.

“So right now, the impacts are gonna be felt in the planning and design stages of the projects, which is where both 413 and Bradford Bypass are at,” Bhatt said.

“There are some major milestones coming up in the next few weeks which should impact projects in the long run.”

A spokesperson for Treasury Board President Caroline Mulroney said the government has held numerous bargaining sessions with PEGO since July 2023.

“The government has been negotiating in good faith and will continue to do so,” Liz Tuomi said in a statement, adding that all ministries have continuity plans in case of labour action.

This report by The Canadian Press was first published Oct. 22, 2024.

The Canadian Press. All rights reserved.

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