Cabinet reshuffle will boost Canada's trade agenda

Significance

Prime Minister Justin Trudeau’s cabinet reshuffle signals efforts to address pressing foreign policy challenges confronting Canada in the new year. The government is signalling its determination to preserve and defend economic relations with the United States, Canada’s largest trading partner, ahead of Donald Trump’s inauguration as president on January 20. However, Ottawa also wants to move faster on diversifying Canada’s economic relationships in Europe and Asia, which Freeland will be expected to facilitate.

Impacts

• Canada’s robust support for international climate diplomacy could form a sticking point in ties with US climate sceptics.
• Trump-related strengthening of the US dollar may prove a boon to otherwise skittish Canadian exporters.
• Asia-focused pipeline projects will receive Trudeau’s support, Trump’s likely bid to revive Keystone XL notwithstanding.