Economic experts tell summit that greater urgency on trade issues needed
Posted May 7, 2026 12:00:57 PM.
Last Updated May 7, 2026 02:53:04 PM.
TORONTO — Urgency on trade certainty and diversification was a key message economic experts emphasized at a Public Policy Forum conference Thursday.
Speaking at the Canada Growth Summit, CIBC chief economist Avery Shenfeld said the government is doing the right things, but that it’s important not to slow-walk the process given the risks.
He said efforts to diversify trade and ease restrictions on exports to places like China and India is important, but the gains are still much smaller that what the U.S. offers.
“The reality is that when you actually measured the size of those as a share of our export basket, of those wins, they were pretty small. So I think we do have to be still focused on plan A, which is getting a deal with the U.S. that’s the best we can.”
He said while a deal remains pending, Canada risks the U.S. deciding on new trade irritants like it did with the supposed problem of fentanyl coming in from Canada.
“We can’t really slow-walk on this.”
Louise Blais, Quebec’s representative for the renewal of the Canada-United States-Mexico Agreement, said the existing tariffs are killing businesses so it’s important to find a resolution.
“While I understand the strategic approach to going slow, the fact of the matter is companies are going bankrupt as we speak, and those companies will be gone forever.”
She said companies like South Shore Furniture did all the right things like invest in automation, but it wasn’t enough to save the business from the trade disruptions.
“We’ve got to get to some form of resolution, in my view, sooner rather than later before we lose a generation of entrepreneurs in Canada.”
Speaking to media at the event, Finance Minister François-Philippe Champagne said Canada still benefits from the CUSMA trade deal in place while the government works toward a deal that will last.
He pointed to U.S. President Donald Trump’s changes in tariff polices despite deals in place, such as the recently announced increase in tariffs on European vehicles, as reason to not rush into an unreliable deal.
“I understand the aspect of urgency, but if you look at the fact today, I think we have seen the volatility when it comes to tariffs, and the fact that you may have a signed agreement does not preclude you from having to deal with volatility when it comes to tariffs,” said Champagne.
“We need to continue to press our American colleagues and fight for the workers, fight for the industry, but I would say everyone wants certainty.”
Steve Verheul, a former chief trade negotiator for Canada, said he isn’t banking on any kind of resolution coming from the upcoming review of CUSMA.
“I think that positions are still too far apart,” Verheul said.
He said the U.S. is still waiting for concessions on sensitive issues while Canada is waiting for the U.S. to move on big issues like metal and auto tariffs.
But while he sees barriers, he too urged urgency on trade.
This report by The Canadian Press was first published May 7, 2026.
Ian Bickis, The Canadian Press
