The federal government hinted at an escalating trade war today as two senior cabinet ministers warned of potential tariffs on American exports in retaliation for U.S. policies on softwood lumber.Now don't get me wrong, I think Canada should have a strong international trade policy. Unfortunately, slapping around the US Congress isn't going to accomplish anything. First of all, no members of the US Congress have any constituents in Canada. Second of all, I would bet you that they have plenty of constituents that could make a few quick bucks off of an Canada-US trade war. It's a non-starter I'm afraid.
Trade Minister Jim Peterson is identifying areas where Canadian tariffs could put maximum pressure on the U.S. economy with minimal damage domestically, two of his cabinet colleagues said.
I guess I find the entire softwood lumber dispute somewhat amusing because of the fierce emotions Canadians bring to the fight. Sure the US is shafting us regarding softwood lumber but considering the amount of goods and services that cross our border everyday, the trade relationship between us is undoubtably the best between any two countries in the world.
Another thought that should be considered is that with any type of representative government legislators are going to pull a few cheap shots now and again for political gain. In short, if you want to avoid any surprises regarding or international trade relations I'd suggest that we start trading exclusively with Cuba and North Korea.