As the United States and Canada negotiate the terms of their withdrawal from the World Trade Organization, some industries are wondering how they will continue to supply the world’s largest economy and one of its biggest markets with vital chemicals, such as pesticides, fertilizers and pharmaceuticals.
With the United Kingdom, Australia and France all also leaving the WTO, Canada will join only the United Arab Emirates, Thailand, New Zealand and Malaysia.
But in the short term, the country’s industry will be hit harder than ever, especially in terms of imports.
The United States, by far the largest export market for Canada’s chemicals, will have to import half of the chemicals it used to make in the last 20 years.
“We can’t just continue to be a net importer, because our domestic industry will continue its decline,” said Kevin Smith, chief executive officer of the Canadian Chemical Council.
“Our manufacturers are the ones who will lose the most.”
As the U.S. and Canada are negotiating the terms for their withdrawal, Canadian exports to the U., the world leader in chemicals, are being hammered.
That’s despite the fact that the U, Canada’s largest trading partner, has made great strides in reducing its trade deficit with the U while cutting greenhouse gas emissions.
Canada, with a GDP of $17.8 billion, exported more than $10 billion worth of chemicals last year, a far cry from a decade ago.
Canada’s biggest export market, the U and U.K., are both pulling out of the WTO and will lose their trading rights by the end of this year.
But the trade gap between Canada and the U is much larger than that.
It is estimated that Canada and other U.N. member states will be losing $3 billion annually by 2030.
That will be less than half the $12.4 billion in exports that the United states, the second-largest exporter, exported last year.
While the U’s exit is good news for Canada, it won’t be as good as the trade-off that the other countries will face as a result of the trade dispute.
Canada has to pay the price for a $20 billion trade deficit.
It also needs to buy from other countries, which means paying more for the same chemicals.
The trade gap is already hurting Canada’s economy and manufacturing, Smith said.
The U.U. and the other UNA members have made significant progress in reducing their trade deficits, but there is still a long way to go.
“There is an urgent need to invest in Canada to address this long-term trade imbalance and this has to be dealt with as part of the long-standing negotiations to be concluded,” Smith said in an interview with CBC News.
“It’s just not going to happen overnight.”
Smith said the United Nations and other international organisations need to act now to reduce the trade deficit by reducing their import quotas.
The WTO, which is a global body, has agreed to impose a trade-neutral, non-tariff quota on chemicals to keep the world economy competitive.
The quota will apply to imports of chemicals by the U- and U-S.
alone and to imports from other WTO member states.
If Canada is not prepared to meet the quota, the WTO will not approve its ratification.
“The U. of A. and U of C. are now asking for an immediate commitment to meet their quota in a timely fashion,” Smith told CBC News in an email.
“For a WTO member state to be able to meet this quota, it must be negotiated by WTO members, including the U of A., the U – and Canada.”
But there are other ways the U can be a more effective partner in the global chemical industry, Smith added.
The Canadian government recently announced a $5 billion investment in Canada’s Chemours, an advanced chemical plant.
Smith said it is a welcome move and “just another step in Canada taking advantage of the expertise of our industry to continue to grow our own industry.”
Smith has long been critical of Canada’s trade policies and said he is looking forward to seeing what the government does to bring it closer to fulfilling its commitments to the WTO.
He is concerned that Canada will be “bought off” by the other nations to the detriment of Canadian interests.
Smith, who has worked in the chemical industry for more than 40 years, is hopeful the UNA countries will meet their commitments to reduce their trade deficit as quickly as possible.
“In the coming months, we will be making sure we get our own deal in the U.”