Business
Canada holds valuable bargaining chip in trade negotiations with Trump
From the Fraser Institute
By Alex Whalen and Jake Fuss
On the eve of a possible trade war with the United States, Canadian policymakers have a valuable bargaining chip they can play in any negotiations—namely, Canada’s “supply management” system.
During his first day in the Oval Office, President Donald Trump said he may impose “25 per cent” tariffs on Canadian and Mexican exports into the United States on Feb. 1. In light of his resounding election win and Republican control of both houses of congress, Trump has a strong hand.
In response, Canadian policymakers—including Prime Minister Justin Trudeau and Ontario Premier Doug Ford—have threatened retaliation. But any retaliation (tariffs imposed on the U.S., for example) would likely increase the cost of living for Canadians.
Thankfully, there’s another way. To improve our trade position with the U.S.—and simultaneously benefit Canadian consumers—policymakers could dismantle our outdated system of supply management, which restricts supply, controls imports and allows producers of milk, eggs and poultry to maintain higher prices for their products than would otherwise exist in a competitive market. Government dictates who can produce, what can be produced, when and how much. While some aspects of the system are provincial (such as certain marketing boards), the federal government controls many key components of supply management including import restrictions and national quotas.
How would this help Canada minimize the Trump threat?
In the U.S., farmers backed Trump by a three-to-one margin in the 2024 election, and given Trump’s overall views on trade, the new administration will likely target Canadian supply management in the near future. (Ironically, Trump has cried foul about Canadian tariffs, which underpin our supply management system.) Given the transactional nature of Trump’s leadership, Canadian negotiators could put supply management on the negotiating table as a bargaining chip to counter demands that would actually damage the Canadian economy, such as Trump’s tariffs. This would allow Trump to deliver increased access to the Canadian market for the farmers that overwhelmingly supported him in the election.
And crucially, this would also be good for Canadian consumers. According to a 2015 study, our supply management system costs the average Canadian household an estimated extra $300 to $444 annually, and higher prices hurt lower-income Canadians more than any other group. If we scrapped supply management, we’d see falling prices at the grocery store and increased choice due to dairy imports from the U.S.
Unfortunately, Parliament has been moving in the opposite direction. Bill C-282, which recently passed in the House of Commons and is now before the Senate, would entrench supply management by restricting the ability of Canadian trade negotiators to use increased market access as a tool in international trade negotiations. In other words, the bill—if passed—will rob Canadian negotiators of a key bargaining chip in negotiations with Trump. With a potential federal election looming, any party looking to strengthen Canada’s trade position and benefit consumers here at home should reject Bill C-282.
Trade negotiations in the second Trump era will be difficult so our policymakers in Ottawa and the provinces must avoid self-inflicted wounds. By dismantling Canada’s system of supply management, they could win concessions from Team Trump, possibly avert a destructive tit-for-tat tariff exchange, and reduce the cost of living for Canadians.
Business
Storm clouds of uncertainty as BC courts deal another blow to industry and investment
From the Fraser Institute
By Tegan Hill and Jason Clemens
Recent court decision adds to growing uncertainty in B.C.
A recent decision by the B.C. Court of Appeal further clouds private property rights and undermines investment in the province. Specifically, the court determined British Columbia’s mineral claims system did not follow the province’s Declaration on the Rights of Indigenous Peoples Act (DRIPA), which incorporated the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) into law.
DRIPA (2019) requires the B.C. provincial government to “take all measures necessary to ensure the laws of British Columbia are consistent with the Declaration,” meaning that all legislation in B.C. must conform to the principles outlined in the UNDRIP, which states that “Indigenous peoples have the right to the lands, territories and resources which they have traditionally owned, occupied or otherwise used or acquired.” The court’s ruling that the provincial government is not abiding by its own legislation (DRIPA) is the latest hit for the province in terms of ongoing uncertainty regarding property rights across the province, which will impose massive economic costs on all British Columbians until it’s resolved.
Consider the Cowichan First Nations legal case. The B.C. Supreme Court recently granted Aboriginal title to over 800 acres of land in Richmond valued at $2.5 billion, and where such aboriginal title is determined to exist, the court ruled that it is “prior and senior right” to other property interests. Put simply, the case puts private property at risk in BC.
The Eby government is appealing the case, yet it’s simultaneously negotiating bilateral agreements that similarly give First Nations priority rights over land swaths in B.C.
Consider Haida Gwaii, an archipelago on Canada’s west coast where around 5,000 people live—half of which are non-Haida. In April 2024, the Eby government granted Haida Aboriginal title over the land as part of a bilateral agreement. And while the agreement says private property must be honoured, private property rights are incompatible with communal Aboriginal title and it’s unclear how this conflict will be resolved.
Moreover, the Eby government attempted to pass legislation that effectively gives First Nations veto power over public land use in B.C. in 2024. While the legislation was rescinded after significant public backlash, the Eby’s government’s continued bilateral negotiations and proposed changes to other laws indicate it’s supportive of the general move towards Aboriginal title over significant parts of the province.
UNDRIP was adopted by the United Nations in 2007 and the B.C. Legislature adopted DRIPA in 2019. DRIPA requires that the government must secure “free, prior and informed consent” before approving projects on claimed land. Premier Eby is directly tied to DRIPA since he was the attorney general and actually drafted the interpretation memo.
The recent case centres around mineral exploration. Two First Nations groups—the Gitxaala Nation and the Ehattesaht First Nation—claimed the duty to consult was not adequately met and that granting mineral claims in their land “harms their cultural, spiritual, economic, and governance rights over their traditional territories,” which is inconsistent with DRIPA.
According to a 2024 survey of mining executives, more uncertainty is the last thing B.C. needs. Indeed, 76 per cent of respondents for B.C. said uncertainty around protected land and disputed land claims deters investment compared to only 29 per cent and 44 per cent (respectively) for Saskatchewan.
This series of developments have and will continue to fuel uncertainty in B.C. Who would move to or invest in B.C. when their private property, business, and investment is potentially at risk?
It’s no wonder British Columbians are leaving the province in droves. According to the B.C. Business Council, nearly 70,000 residents left B.C. for other parts of Canada last year. Similarly, business investment (inflation-adjusted) fell by nearly 5 per cent last year, exports and housing starts were down, and living standards in the province (as measured by per-person GDP) contracted in both 2023 and 2024.
B.C.’s recent developments will only worsen uncertainty in the province, deterring investment and leading to stagnant or even declining living standards for British Columbians. The Eby government should do its part to reaffirm private property rights, rather than continue fuelling uncertainty.
Business
Conservative MP warns Liberals’ national AI plan could increase gov’t surveillance
From LifeSiteNews
Conservative MP Leslyn Lewis raised concerns about the Liberals’ major investment in AI, which could lead to digital ids and loss of freedoms.
Conservative MP Leslyn Lewis is sounding the alarm over the Liberals’ nearly billion-dollar AI infrastructure investment, which could lead to digital IDs
In a December 2 post on X, Lewis raised concerns over the Liberals’ 2025 budget, which funds a $925.6 million “Sovereign Canadian Cloud” and national AI compute infrastructure at the same time as the Liberals are pushing digital identification on Canadians.
“Who audits the algorithms behind government’s new digital systems?” Lewis challenged. “What protections exist for Canadians in this new infrastructure? Who builds it? Who controls it? Who owns the data?”
“Good technology isn’t the issue, our freedoms, surveillance and good accountable governance in a digital era are the real issues,” she warned.
“Digital infrastructure is power, and it must never be implemented in secrecy or without parliamentary scrutiny,” Lewis declared.
Despite spending nearly one billion taxpayer dollars on the project, Prime Minister Mark Carney provides surprisingly few details on how the infrastructure will work and what its purpose will be.
“Budget 2025 proposes to provide $925.6 million over five years, starting in 2025-26, to support a large-scale sovereign public AI infrastructure that will boost AI compute availability and support access to sovereign AI compute capacity for public and private research,” the budget read.
“The investment will ensure Canada has the capacity needed to be globally competitive in a secure and sovereign environment,” it continued.
Alarmingly, the funding comes at the same time as Liberals are moving forward with digital identification systems, despite warnings that they will infringe on Canadians freedoms.
In November, as reported by LifeSiteNews, Liberals moved ahead with digital identification for anyone seeking federal benefits, including seniors on Old Age Security.
Additionally, the Canadian government hired outside consultants tasked with looking into whether or not officials should proceed with creating a digital ID system for all citizens and residents.
Per a May 20 Digital Credentials Issue memo, and as noted by Blacklock’s Reporter, the “adoption” of such a digital ID system may be difficult.
Canada’s Privy Council research from 2023 noted that there is strong public resistance to the use of digital IDs to access government services.
Nonetheless, Conservative leader Pierre Poilievre sounded the alarm by promising to introduce a bill that would “expressly prohibit” digital IDs in Canada.
Critics have warned that the purpose of such IDs is actually to centralize control over citizens. This opinion seems to be mirrored by the general public, with a Bank of Canada survey finding that Canadians are wary of a government-backed digital currency, concluding that a “significant number” of citizens would resist the implementation of such a system.
Digital IDs and similar systems have long been pushed by globalist groups like the World Economic Forum, an organization with which Carney has extensive ties, under the guise of ease of access and security.
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