Canadian PM Warns Drive to Protectionism Carries Risk to Growth
June 28 2016 - 2:57PM
Dow Jones News
By Paul Vieira
OTTAWA -- Canadian Prime Minister Justin Trudeau, on the eve of
an Ottawa summit with U.S. and Mexican leaders, pointed to the
North American example of economic integration and warned of risks
posed by a growing tide of protectionism and nationalism
underscored by last week's Brexit vote.
"Better collaboration, better partnerships are a path to
prosperity," Mr. Trudeau said at a joint press conference in Ottawa
with Mexican President Enrique Peña Nieto, ahead of Wednesday's
North American leaders' summit in which President Barack Obama will
also participate.
Mr. Trudeau and Mr. Peña Nieto unveiled measures aimed at
boosting Canada-Mexico ties, with Canada agreeing to lift a
contentious requirement on Dec. 1 that required Mexicans visiting
Canada to obtain a visa.
Mexico, meanwhile, agreed to open up its market to Canadian beef
exports.
"We have a shared vision, and we really believe in regional
integration, " said Mr. Peña Nieto. "We have a shared vision, and
we really believe in regional integration," said Mr. Peña Nieto.
"Working as part of a team will allow our societies to develop
further, and better."
North America is "a compelling example we want to showcase at a
time unfortunately people are prone to turning inwards -- which
will be at the cost of economic growth," Mr. Trudeau said.
Mr. Trudeau is set to host the summit at a turbulent time for
the developed world, as it deals with the fallout from the U.K.
vote to leave the European Union. Most stock markets rebounded
Tuesday after days of steep declines, which wiped out $3 trillion
from global stock markets, as traders worry about the economic and
political consequences from the vote.
The summit's agenda will now pivot to tackle Brexit's fallout,
and how the countries could coordinate efforts to insulate
themselves, according to a briefing by U.S. officials. "There are
opportunities to highlight the significance of North America," said
Mark Feierstein, senior director for western-hemisphere affairs at
the National Security Council.
Canada is the leading market for U.S. exports, while Mexico
ranked second. On the import side, Canada and Mexico ranked second
and third, respectively.
The Brexit victory comes as the U.S. presidential election cycle
in is full swing, which has featured Republican presumptive nominee
Donald Trump championing greater border and immigration controls,
and skepticism about trade pacts such as the North American
Free-Trade Agreement.
"The North American leaders realize the whole framework of
continental integration and cooperation could be in jeopardy," said
Eric Miller, head of Washington-based Rideau Potomac Strategy
Group, a consultancy that specializes in North American trade
issues.
Besides Wednesday's meeting of North American leaders, Mr. Obama
will meet with European leaders next week during a summit among
members of the North Atlantic Treaty Organization about next steps,
such as what the European Union can do to reduce the risk other
states will follow in U.K.'s footsteps.
U.S. officials said the three leaders would also address a range
of issues that go beyond the economy, such as peacekeeping, drug
trafficking and refugees. The three countries will also agree to
boost clean-energy production, while Mexico will join Washington
and Ottawa in a formal pact to reduce methane emissions by up to
45% by 2025, U.S. officials said.
Write to Paul Vieira at paul.vieira@wsj.com
(END) Dow Jones Newswires
June 28, 2016 14:42 ET (18:42 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.