Canadian ambassador: Best time to diversify economy

World
Europe

01:17

As Canadian Foreign Minister Chrystia Freeland said, the idea of Canada exports composing a threat to the US national security is not only “absurd” and also “insulting”, John McCallum, Ambassador of Canada to China, said in a speech at APEC China CEO Forum 2018 in Beijing on Saturday.

“When I look at the world today, I think the world is upside down,” McCallum said, referring to the two close allies now slapping tariffs on each other.

In response to the US tariffs on Canadian aluminum and steel, McCallum quoted what Canadian Prime Minister Justin Trudeau said during the G7 summit last month, “Canadians, we’re polite, we’re reasonable, but we also will not be pushed around.”

To retaliate the US tariffs, Canada increased tariffs on US exports worth 16.6 billion Canadian dollars (12.5 billion US dollars) since June 30, 25 percent tariffs on US steel products and 10 percent on other goods.

Meanwhile, Canadian government are reaching out to the US to persuade them there is a better way other than tariffs and the negotiations of NAFTA (North American Free Trade Agreement) is continuing, according to McCallum.

There has never been a better time to diversify the country’s economy, he said, noting that’s why Canada has concluded free trade agreement with Europe and it is having “serious free trade discussions” with China, India and other countries.

Faced with trade tensions arising around the world, he suggested to learn lessons from history.

Looking back to the economic recession in the 1930s, the trade war played a key role, he said, noting at that time, the tit-for-tat tariff increases across the world contributed to the great depression.

“I am not offering any forecasts. But it would be wise if we did not ignore the lessons of history. ”