Trade issues mount in Canada-US bilateral relations

Significance

The potato ban is one of several issues in which, when seen from Ottawa, US policy looks less neighbourly that many in the United States might assume. Although Prime Minister Justin Trudeau has made much of his relationship with President Joe Biden, Canadians are increasingly aware of these irritants in bilateral relations.

Impacts

• An escalation in retaliatory tariffs is possible over the next few years, with damaging effects for both economies.
• Ottawa is likely to seek a new agreement on softwood lumber duties before the end of the Biden administration.
• The chance of a rupture in the section of a Canadian pipeline that runs through Michigan may rise if legal disputes delay action.
• Washington has made little effort to consult with Ottawa over policy towards China and this is unlikely to change.