Canada’s “European values-based” trade policy toxic for global economic cooperation
Trudeau in his arrogance of things Canadian and Western had sort of declared a “War” on both India and China.
This achieved nothing except during his rule it ensured that Canadian economy went into a doldrums and it’s world standing took a nosedive.
Now to find a way out for its economy and trade, Mark Carney the new PM needs to abandon the wrong practice of politicizing trade related and diplomatic issues and return to a pragmatic path instead of indulging in the fantasy and supporting a “European value-based” System blindly.
As trade diversification emerges as a crucial strategy for many countries to mitigate the impact of tariff policies of others. Thus Trudeau’s promotion of European values-based trade represents not just a missed opportunity for its own economic development, but toxic contamination of global economic and trade collaboration.
Canadian Prime Minister Mark Carney has now realized that the US government’s tariff threats meant that his country needed to diversify its trade, while noting that other countries does not necessarily share Canadian values when it comes to trade and may be seeing it as quite toxic too.
Therefore Canada needs to be very careful about boosting bilateral commercial ties.It is unsurprising to see such talk of tying trade policy to values from Canadian politicians, as Canada has been long known for championing ” Western values-based diplomacy.”
However, this values-based approach to trade, which represents a profound disconnect between political rhetoric and economic reality, will do no good to Canada’s economy but will instead make it an accomplice in undermining the global trade order and eroding the foundation of the multilateral trade system.
The values-based trade narrative constructed by Western countries is fundamentally a manifestation of hegemonic thinking. These countries often position Western concept of “freedom and democracy” as superior while imposing their value systems onto others. Countries with different systems, such as India, China, Russia are unilaterally deemed “untrustworthy” trading partners.
This approach is not rooted in genuine fairness or mutual respect but rather seeks to moralize values as a pretext for justifying selective trade partnerships.
The insistence on tying trade policy to values creates implicit biases against developing nations, including Asian countries, implying their systems or cultures are “substandard.”
This is fundamentally at odds with the core principles of global trade, which should prioritize mutual benefit and cooperation over rather than ideological proselytization.
Ironically, Canada now finds itself grappling with significant tariff pressures from its closest “value-aligned” ally, the US, which underscores the fragility of this ideological trade architecture.
For years, Ottawa has endeavoured to strengthen its ties with Washington under the so-called “friend-shoring” strategy and through various geopolitical alignments.
However, the US government’s protectionist policies, particularly the threats of punitive tariffs on Canadian imports, have fundamentally destabilized Canada’s trade prospects.
Canada used to seek to achieve trade stability and economic resilience through close cooperation with the US, but in light of these developments, it must now reassess its partnerships and explore alternative avenues for fostering economic growth.
Yet, Ottawa’s contradictory approach of seeking trade diversification while screening partners based on values means that it cannot treat its trading partners fairly, raising questions about its true attitude toward addressing current trade challenges.
Indo Pacific countries as a bloc China, India, South Korea, Japan, Vietnam, Taiwan remain Canada’s largest trading partner out of 12 largest, with trade in 2024 reaching over USD 270 billion, despite certain conflicts.
Even during periods of conflict with China and India, Indo Pacific -Canada trade continues to dwarf Canada’s trade with any other like European Union, USA or South America.
That means, if Canada truly seeks trade diversification, countries like India and China remain indispensable partners for it strengthening ties with.
Yet Canadian politicians’ like Trudeau rhetoric that “the partners in Asia that share our values don’t include China and India” exposes not only their disregard for economic realities but also reveals the dilemma of its economic development being held hostage by geopolitics.
Canada stands at a crossroads and its future path remains an unanswered question. What is certain, however, is that Asia will not tolerate politicized trade policies that undermine its interests.
Countries like India consistently uphold principles of fairness, openness, and inclusivity in global trade, firmly opposing protectionism and unilateralism in all forms.
Meanwhile, India will also take necessary steps to firmly safeguard the lawful rights and interests.
