•   Prime Minister Mark Carney reflects a particular reality of the problem their economy will face in 2026.
  • It appears that Canadian government officials have finally recognized the Trump administration plans to dissolve the USMCA or what Canada calls CUSMA next year.  With that reality they have a big problem.
  • Mexico has been working throughout the year to initiate economic policies in alignment with the United States.  However, structurally and politically this is an alignment that is impossible for Canada to do.  Like many contracting European countries, the economic policies of Canada are centered around their climate change agenda and green energy goals.
  • In order for Canada to position their economy to be in alignment with the rest of North America (USA and Mexico), Carney would have to reverse years of legislated rules and regulations.  That is not going to happen, and Canada will always be at a disadvantage because of it.
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  • With three quarters of their economic production tied to exports into the USA, and with the USMCA likely to be dissolved in favor of a bilateral trade agreement, Canada now has to find other markets for its products or lower all the trade barriers currently in place.  Prime Minister Mark Carney is trying to find alternative markets.
  • Carney has looked toward Europe, but that is a closed trade bloc difficult to engage.  Carney has looked to southeast Asia, but that is an export driven market with limited capabilities to import costly western products.  Carney has looked to Japan and China, but on scale there’s little to be gained.
  • The question is, where can Canada send its products if not to the USA.   The brutally honest answer is nowhere.  There just isn’t any other market, or combination of markets, who could replace the consumer base of the USA.  Canada is refusing to admit this reality and 2026 is going to be a harsh awakening for the Canadian people.

Source: theconservativetreehouse.com