Goderich Signal Star, 2017-01-25, Page 66 Signal Star • Wednesday, January 25, 2017
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Canada
Canada's strongest card in the era of Trump: We buy American
is no big shocker, in a country
leaning heavily Democrat, that
reaction to President Donald
,f'rump's truculent inaugural speech
in the first 48 hours has run the
gamut from fear, to loathing, to hor-
ror. But a pause for breath is in order.
There's room for qualified reassur-
ance, from a Canadian standpoint,
in the blunt clarity of the new
administration's plans.
The inaugural address last Friday
was a near -verbatim reiteration of
Trump's major campaign theme, in
terms calculated to appeal to the
roughly 63 million Americans who
voted for him. This was the big line:
"Every decision on trade, on taxes,
on immigration, on foreign affairs,
will be made to benefit American
workers and American families."
Hand -wringing and hair -tearing
aside, that nowbecomes the standard
by which everyTrump administration
decision will be measured and antici-
pated, at home and abroad, for the
next four years. It means, for starters,
that Canadian individuals and busi-
nesses can begin to plot a way through
the previously impenetrable murk
That leaves us better oft in this narrow
sense, than we were Thursday.
Judging from the speech, and a
series of brief policy statements that
appeared on the White House website
immediately after Trump was swom
in, there is profound geopolitical
uncertainty ahead. There's also room
for cautious reassurance. This country
has cards to play — considerably bet-
ter
etter ones, it must be said, than Mexico
or China.
Here's what did not appear in the
inaugural, or in any of Trump's
Column
Michael Den Tandt
remarks since: Any repetition (Allis
prior musings about banning Muslims
from entering the United States, or
forcing Muslim Americans to register
in a database, or curtailing immigra-
tion from specific countries, or build-
ing a Great Wall on the U.S.-Mexican
border
The wall, front and centre through-
out Trump's run for the Republican
nomination and the Presidency last
year, has been relegated to the sixth
paragraph of a White House website •
policy summary on law and order
That's a far cry from a declaration that
construction will begin by such -and -
such date. It is a concession, perhaps,
to the manifest impracticality, gro-
tesque expense and sheer impossibil-
ity of forcing Mexico to pay for a wall,
either now or later
Here's what is on the table in the
weeks and months ahead, unequivo-
cally Combatively protectionist eco-
nomic policy, which represents the
most dramatic and far-reaching shift
in the global order since the fall of the
Berlin Wall, and perhaps since the
Second World War
"We must protect our borders
from the ravages of other countries
making our products, stealing our
companies, and destroying our jobs,"
read one line of the inaugural
speech, which was reportedly co -
written by Trump's chief strategist,
Stephen Bannon. "Protection will
lead to great prosperity and
strength"
Setting aside that this statement is
wrong and has been demonstrated
to be wrong time and time again,
most recently by the North Ameri-
can Free Trade Agreement, under
which three-way trade between
Canada, Mexico and the United
States has tripled in the past 25 years,
here's what it likely means.
The Trump administration, as the
speech hammered home yet again,
is monomaniacally focused on
bringing manufacturing back to the
continental United States. America's
three largest manufactured -goods
trading partners are China, Canada
and Mexico, in that order.
Mexico, according to the Office of
the United States Trade Representa-
tive, had two-way goods trade with the
United States worth US$531-billion in
2015. The U.S. deficit in that exchange
was $58 -billion, meaning Americans
bought $58 billion more in goods from
Mexicans, than they sold to them.
It's a significant imbalance with a
partner just next door and helps
explain — alongwith illegal immigra-
tion — Trump's rhetoric targeting
Mexico and Mexican imports.
China had two-way goods trade
with the United States of $659.4 -bil-
lion in 2015. American exports to
China amounted to just $116 -billion,
whereas U.S. goods imports from
China were worth $482 -billion. The
U.S. deficit in that exchange was a
whopping $366 -billion. It's a huge
imbalance.
It helps explain, again in the
Postmedia gets award from Google for growth of
its advertising business
Canada's largest newspaper publisher
and the owner of the National Post has
been recognized by tech giant Google Inc.
for growing its advertising base over 400
per cent.
Postmedia Network Canada Corp. was
named the recipient of the 2016 North
America GoogleChannelAward in the
Strategic Account Growth Champion cat-
egory. The prize is awarded to a single
partner of Google's in North America for
growing their revenue using online adver-
tising service AdWords.
Postmedia increased its total client
accounts by 454 per cent year -over -year
from 2015 to 2016.
"We are honoured to receive this pres-
tigious award from Google," said.Paula
Festas,-Postmedia's chief revenue officer:
"Postmedia is committed to offering full
service advertising solutions and driving
value through its customized advertising
solutions and multi -platform campaigrfs
for small and medium-sized businesses
and our account growth numbers are a
true testament to our exceptional cus-
tomer service and performance."
In its partnership with Google, Postme-
dia sells small and medium-sized busi-
nesses digital marketing services, which
include search engine marketing and
e-commerce web design.
With print advertising and sales reve-
nues in sustained decline across Canada,
the company has pursued several new
digital initiatives in addition to its business
with Google, including marketing partner-
shipswith fintech companiesAgilityForex
Ltd. and Mogo Finance Technology Inc.
and a digital lab at Kitchener,ON-based
startup incubator Communitech.
Winners in other categories of the
North America Google Channel Awards
this year include U.S. broadcaster and
publisher The E.W. Scripps Company, as
well as digital marketing start-ups in Bos-
ton-based WordStream Inc. and Califor-
nia-based ReachLocal Inc.
context of the inauguration speech,
why Trump has for weeks sounded
markedly less friendly to China
than have previous presidents, and
markedly friendlier to Taiwan,
which Beijing considers a rene-
gade province. He's laying the table
for a trans -Pacific trade war.
And Canada? This country had two-
way goods trade with the United States
worth $575 -billion in 2015, but in
almost even measure — a deficit for
America of just $15 billion. American
'goods' bought from Canada are led by
mineral fuels, oil and natural gas, to
the tune of $70 billion in 2015. The top
three categories of American goods
bought by Canadians, meantime,
were vehicles ($48 billion), machinery
($43 billion) and electrical equipment
($25 billion.)
The United States has no larger
manufactured goods export market
than Canada That is why, as the mes-
sage now burning up the lines
between Ottawa and'Washington D.C.
reminds us, an estimated nine million
jobs in 35 states depend on exports to
Canada Put most simply, Canada
buys American.
Whatever trade action the Trump
administration may take in an
attempt to balance U.S. trade with
Mexico or China, it cannot seriously
jeopardize American exports to Can-
ada, without causing widespread
manufacturing job losses on its
home soil — and in the very rust belt
states that gave Trump the victory in
November.
Canada will be buffeted by the sec-
ondary effects of U.S. protectionism
and the geopolitical turmoil that
ensues. We are too good and reliable a
client to become a target ourselves.
1 CAROL HAS A HOT GATE TONIGHT