The pursuit of greater trade liberalization and economic integration through free trade has long been the orthodox position of Canada’s conservative parties..Recall that the original Canada-US Free Trade Agreement was negotiated by the Progressive Conservative government of Prime Minister Brian Mulroney after the famous free trade election of 1988..Lately, the conservative consensus on the benefits of increased trade and economic interdependence appears to be unravelling around the world..In the U.S. it is increasingly common for Republicans to talk of putting 'America First' or to criticize free trade as detrimental to national economic security and the common good..Canadian Conservatives are behaving similarly..Former Conservative Party leader Erin O’Toole adopted a 'Canada First' approach that was openly skeptical of free trade and emphasized industrial self-sufficiency, particularly with respect to trade with China..His successor, Pierre Poilievre, now talks of self-sufficiency in energy and food production as well, and promises to ban overseas oil imports and to subsidize a coast-to-coast oil pipeline..However, the party has yet to fully evaluate Canada’s relationship to the global marketplace. Should it follow recent trends on the right towards protectionism, or campaign for a renewed approach to trade liberalization?.With nearly one-third of our GDP generated by global trade, Canada has always relied on international trade for its wellbeing. But this comes with a trade-off, as economic integration makes Canada more reliant on outside actors and more vulnerable to fluctuations in its main export commodities..Historically, Canadian conservatives have spent more time opposed to free trade than in favour of it, believing that it undercuts Canadian sovereignty and cultural distinctiveness..Sir John A. Macdonald pursued a National Policy that levied high tariffs on foreign imported goods to help Canadian manufacturing withstand American competition..In the 1911 election, Conservative leader Robert Borden successfully rallied Montreal and Toronto business interests against Liberal Prime Minister Wilfrid Laurier’s proposal for free trade with the US..Importantly, these early conservatives embedded their critique of economic interdependence within a broader ideological framework. They rejected a predominantly individualistic, market-based view of the world and instead focused on defending key social, national and cultural institutions..By the 1980s, however, conservatives had become Canada’s main trade proponents — largely in response to critiques of Keynesian economics and a metastasizing welfare state. This entailed a near-total shift in focus to making growth and market integration ends in themselves..Such a market-based perspective on trade has since been challenged by right-wing populists in Europe, and former US President Donald Trump, in particular, was elected partly on his claim that America’s free trade deals were “rigged” by poor domestic negotiators and malicious international actors..Other key Republican figures — such as Senators Josh Hawley and JD Vance — have grounded their opposition to free trade on principled stands against the alleged impacts on local community cohesion, individual economic self-determination and national sovereignty..Much of this criticism is overstated and unpersuasive..Ample economic evidence demonstrates the importance of trade in promoting growth, competition, and living standards. It is good for Canada, and must therefore a core component of conservative thinking..Yet critics of trade are right on two crucial issues..First, the effect of trade is uneven across regions, sectors, and population segments, often producing winners and losers..Second, free trade can cede state power to foreign actors, both private and public..While free trade should remain a predominant commitment for conservatives, important adjustments need to be made to ensure it remains a viable policy course..Contemporary conservatives need to dislodge free trade from its ideological orthodoxy and renew their historic engagement with social and cultural institutions, as their ancestors such as Macdonald and Bennett did..A new conservative perspective on trade should not just focus on individuals as economic units, but also as components of a broader social whole..Unlike protectionist strategies that attempt to save failing industries or subsidize new ones, a renewed trade policy should accept that government can shape economic forces to meet social needs..This could include infrastructure investments, economic opportunity zones, job training and social safety nets to address basic needs unmet by the market..The threat of malicious foreign interference also requires a recalibration of trade policies in order to limit the influence of foreign investment capital and encourage Canadian ownership of domestic industries..Conservative economic policy should move away from a slavish text-book commitment to efficiency and cost to embrace a more expansive notion of the common good..Energy exports are a good example, as the current practice of importing oil to Canada ought to be reconsidered in light of the benefits of greater energy self-sufficiency and diminished reliance on morally dubious exporters..The end result might not be the cheapest tank of gas possible, but it will be safer and more beneficial to Canadians..A significant change in how they regard the benefits of trade is the way forward for Canadian conservatives..Sam Routley is a PhD Student in Political Science at the University of Western Ontario. A longer version of this story first appeared at C2CJournal.ca.
The pursuit of greater trade liberalization and economic integration through free trade has long been the orthodox position of Canada’s conservative parties..Recall that the original Canada-US Free Trade Agreement was negotiated by the Progressive Conservative government of Prime Minister Brian Mulroney after the famous free trade election of 1988..Lately, the conservative consensus on the benefits of increased trade and economic interdependence appears to be unravelling around the world..In the U.S. it is increasingly common for Republicans to talk of putting 'America First' or to criticize free trade as detrimental to national economic security and the common good..Canadian Conservatives are behaving similarly..Former Conservative Party leader Erin O’Toole adopted a 'Canada First' approach that was openly skeptical of free trade and emphasized industrial self-sufficiency, particularly with respect to trade with China..His successor, Pierre Poilievre, now talks of self-sufficiency in energy and food production as well, and promises to ban overseas oil imports and to subsidize a coast-to-coast oil pipeline..However, the party has yet to fully evaluate Canada’s relationship to the global marketplace. Should it follow recent trends on the right towards protectionism, or campaign for a renewed approach to trade liberalization?.With nearly one-third of our GDP generated by global trade, Canada has always relied on international trade for its wellbeing. But this comes with a trade-off, as economic integration makes Canada more reliant on outside actors and more vulnerable to fluctuations in its main export commodities..Historically, Canadian conservatives have spent more time opposed to free trade than in favour of it, believing that it undercuts Canadian sovereignty and cultural distinctiveness..Sir John A. Macdonald pursued a National Policy that levied high tariffs on foreign imported goods to help Canadian manufacturing withstand American competition..In the 1911 election, Conservative leader Robert Borden successfully rallied Montreal and Toronto business interests against Liberal Prime Minister Wilfrid Laurier’s proposal for free trade with the US..Importantly, these early conservatives embedded their critique of economic interdependence within a broader ideological framework. They rejected a predominantly individualistic, market-based view of the world and instead focused on defending key social, national and cultural institutions..By the 1980s, however, conservatives had become Canada’s main trade proponents — largely in response to critiques of Keynesian economics and a metastasizing welfare state. This entailed a near-total shift in focus to making growth and market integration ends in themselves..Such a market-based perspective on trade has since been challenged by right-wing populists in Europe, and former US President Donald Trump, in particular, was elected partly on his claim that America’s free trade deals were “rigged” by poor domestic negotiators and malicious international actors..Other key Republican figures — such as Senators Josh Hawley and JD Vance — have grounded their opposition to free trade on principled stands against the alleged impacts on local community cohesion, individual economic self-determination and national sovereignty..Much of this criticism is overstated and unpersuasive..Ample economic evidence demonstrates the importance of trade in promoting growth, competition, and living standards. It is good for Canada, and must therefore a core component of conservative thinking..Yet critics of trade are right on two crucial issues..First, the effect of trade is uneven across regions, sectors, and population segments, often producing winners and losers..Second, free trade can cede state power to foreign actors, both private and public..While free trade should remain a predominant commitment for conservatives, important adjustments need to be made to ensure it remains a viable policy course..Contemporary conservatives need to dislodge free trade from its ideological orthodoxy and renew their historic engagement with social and cultural institutions, as their ancestors such as Macdonald and Bennett did..A new conservative perspective on trade should not just focus on individuals as economic units, but also as components of a broader social whole..Unlike protectionist strategies that attempt to save failing industries or subsidize new ones, a renewed trade policy should accept that government can shape economic forces to meet social needs..This could include infrastructure investments, economic opportunity zones, job training and social safety nets to address basic needs unmet by the market..The threat of malicious foreign interference also requires a recalibration of trade policies in order to limit the influence of foreign investment capital and encourage Canadian ownership of domestic industries..Conservative economic policy should move away from a slavish text-book commitment to efficiency and cost to embrace a more expansive notion of the common good..Energy exports are a good example, as the current practice of importing oil to Canada ought to be reconsidered in light of the benefits of greater energy self-sufficiency and diminished reliance on morally dubious exporters..The end result might not be the cheapest tank of gas possible, but it will be safer and more beneficial to Canadians..A significant change in how they regard the benefits of trade is the way forward for Canadian conservatives..Sam Routley is a PhD Student in Political Science at the University of Western Ontario. A longer version of this story first appeared at C2CJournal.ca.
