Showing posts sorted by date for query CPTPP. Sort by relevance Show all posts
Showing posts sorted by date for query CPTPP. Sort by relevance Show all posts

Wednesday, September 02, 2026

 

Brussels will not mediate between US and Canada, EU trade chief says

EU Trade Commissioner Maroš Šefčovič told Euronews the Commission was ready to explore all options to deepen the relationship with Canada.
Copyright AP Photo

By Peggy Corlin & Maria Tadeo
Published on

Maroš Šefčovič said the Commission is ready to explore a wide range of options to deepen cooperation with Ottawa as Canadian Prime Minister Mark Carney calls for a closer partnership with the EU.

In an exclusive interview, European Union Trade Commissioner Maroš Šefčovič told Euronews that the EU is not in a position to mediate in the trade war between Canada and the United States following the collapse of their trade talks.

Ten days ago, Canadian Prime Minister Mark Carney walked away from the negotiations with the Trump administration, blaming them for pressuring Canada over the use of the French language.

In the following days, US President Donald Trump announced 50% US tariffs on Canadian cars and trucks, to which Ottawa retaliated with tariffs on more than 700 US imports, worth about $20 billion (€17.2 billion).

“I don't think that we are in a position to mediate,” Šefčovič said. “At the same time I know that they [Canada and the US] have such a close economic relationship that, despite the current tension, sooner or later there will be attempts to resolve it.”

The Commissioner added that “tariffs are taxes which are paid in the end by the economic operators or by the citizens”, a message he has reiterated several times over the last year during the EU's own trade dispute with Washington.

“We clearly support free and fair trade with the lower or no tariffs at all,” he told Euronews.

Ready to cooperate

Since the trade talks stopped, Carney has called for a closer relationship between Ottawa and Brussels and announced he will attend European Commission President Ursula von der Leyen's State of the Union in Strasbourg in mid-September, one of the main events in Brussels' political calendar.

An EU-Canada summit is also scheduled for later this autumn.

Šefčovič said the Commission is ready to explore “all possibilities” to increase cooperation with Canada, but he added that any new arrangements “would very much also depend on how comfortable the Canadian side would feel and what is its level of ambition”.

He pointed out that after Brussels clinched a trade deal with Ottawa in 2016, trade between the EU and Canada grew by 75% – but he also suggested that the deal could be pushed further.

“On both sides, we have certain elements which we can improve, still certain barriers, certain sensitivities for the products. I really think that we can explore much more that.”

Šefčovič said that a digital agreement might be signed with Canada before the end of the year, and he also cited coming cooperation in critical raw materials with potential joint investments.

Ottawa is seen by Brussels as a like-minded partner sharing its vision of the new global trade order, and Šefčovič hopes to have its backing to get closer to members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which has liberalised trade between 12 countries in the Asia-Pacific region and the Americas, including Canada – but not the US. The UK became the pact's first and to date only European member in 2024, with Canada ratifying its full accession as of 1 September.

“Canadians are very important partners for forging a new level of cooperation with the CTPPP," Šefčovič said, "which represents together 40 percent of global trade.”

Friday, August 28, 2026

 

Can Pax Silica De-Sinicize U.S. Supply Chains? – Analysis

Diplomats pose for a photograph after signing the Pax Silica declaration on December 12, 2025. (US State Department)

Key Takeaways:

  • Pax Silica is a U.S.-led coalition of about 24 countries aimed at building China-independent supply chains for critical minerals, semiconductors, and AI, with an early industrial hub planned in the Philippines.
  • Its success hinges on long-term endurance and concrete delivery; past U.S. initiatives (Blue Dot, B3W/PGII, IPEF) largely stalled at standards and pledges, while China has locked in partners through sustained industrial policy, refining capacity, and tangible BRI projects.
  • To compete, Washington must offer developing partners real value-added processing, technology transfer, and better regulation rather than mainly raw-material extraction or security-for-minerals deals, or risk losing credibility and ground in the tech race.

The U.S.-led Pax Silica initiative seeks to reduce dependence on China across critical-mineral, semiconductor, and AI supply chains, but its success will depend on sustained commitment, concrete project delivery, and meaningful benefits for developing-country partners.

In the high-stakes race for AI and computing power, China is moving up from the foundation to the front, catching up with the West. The United States is doing the reverse, rebuilding its material and production base to reinforce its lead. Washington is working backward to develop a complete supply chain independent of Beijing. Last December, the U.S. launched Pax Silica, a coalition of 24 countries aimed at creating a future AI ecosystem from energy and raw materials to advanced manufacturing. Its pioneering project, an industrial hub, is set to open in the Philippines. Endurance, continuity, and the question of whether geopolitics can trump economics will shape the prospects of this U.S.-led endeavor. 

From mining and refining critical minerals to accelerating domestic semiconductor production, China is becoming an emerging rule-maker in the evolving technology order. Since 2018, it has been hosting annual international AI conferences. To meet the challenge, Washington rolled out the Clean Network program in 2020 to prevent Chinese suppliers from dominating global information and communication solutions. However, outside U.S. allies, calls to ban Huawei and other Chinese vendors largely went unheeded, especially in the Global South. Affordability, performance, compatibility, lack of competitive alternatives, and the opportunity cost of being left out prevailed over US pressure. In 2023, Beijing proposed the Global AI Governance Initiative. Last July 16, 29 countries agreed to establish the World AI Cooperation Organization, which will be headquartered in Shanghai. With China’s entrenched capacity and growing confidence in both the hard and soft dimensions of the global digital infrastructure, the stakes are high for Pax Silica. Failure to compete may mean further erosion of U.S. technological lead. Two key challenges stand out. 

Playing the long game 

First is endurance. China’s rise as the world’s largest mineral refiner and production hub is neither inevitable nor providential. Rather, it is the result of a consistent industrial policy to develop national capacity, assured of a huge domestic demand, driven by ambitious targets and sustained by a willingness to bear great costs. It took about three to four decades for the country to become the world’s top ore processor and global factory. And it paid a steep price to attain this position, enduring tremendous environmental, health, and social harm, which were redressed in later years as the country’s economic strategy produced developmental dividends. 

China produces 76.35% of the world’s refined cobalt and 44.44% of refined copper. It also accounts for 79.38% of global graphite output, 69.23% of rare earths, 42.31% of molybdenum, 20.67% of bauxite (from which aluminum is derived), 17.8% of lithium, and 13.1% of silver. The U.S. has high import reliance on China for a range of critical minerals with civilian and military applications. These include yttrium (93%), bismuth (60%), rare earths (56%), antimony (54%), arsenic (52%), graphite (43%), magnesium (32%), tantalum (22%), gallium (19%), and tungsten (14%). These minerals are used in the manufacture of microchips, mobile phones, computers, consumer electronics, wind turbines, solar panels, electric batteries, transmission cables, precision-guided munitions, jet engines, and missile propulsion systems, among others. 

Pax Silica brings together affluent, technologically advanced countries and resource-rich developing nations. The U.S. is leveraging its alliances and partnerships to disperse production of critical minerals and industrial inputs and reduce the time needed to develop an integrated supply chain untangled from China. Cost and gain will be unevenly distributed, valuations may differ, and negotiation skills among members may vary. But lopsided deals in which some parties bear disproportionate harm, with few safeguards and little benefit, should be avoided. Metrics should go beyond commercial viability to include improved mining regulation, technology transfer, and more value-added processing or manufacturing in developing member countries. This will increase the initiative’s appeal and help future-proof long-term deals from potentially disruptive domestic politics. 

China offered market, investment, and infrastructure to lock in long-term supply agreements. The Belt and Road Initiative (BRI) built roads, railways, ports, and industrial parks. On the ideational level, Beijing is positioning itself as a leader of the Global South, pursuing South-South cooperation with resource-rich developing countries in Asia, Africa, and Latin America. In 2021, the country launched the Global Development Initiative. The so-called resource curse has long plagued several poor but mineral-rich countries wracked by persistent conflict, corruption, and weak governance. The absence of such countries in Pax Silica is likely deliberate. The project does not want to get sucked into risky conflict areas early on or create missionary expectations. But there are cases that show how access to capital and technology can transform commodity exporters. For instance, Chinese investment upgraded Indonesia’s nickel-refining capacity, vindicating Jakarta’s resource nationalism and inspiring other countries to leverage their natural resources to elevate their position in the value chain. 

Washington should recognize this development. More developing states are exercising their agency to chart policies that maximize the value of their finite natural bounty, create better opportunities for their people, and reduce adverse impact on the environment. The U.S. should go beyond transactional minerals-for-security deals like those floated for Ukraine and DR Congo. Concerns that reshoring may mean Global South members will simply perform their usual role of supplying raw ores for processing abroad need to be allayed. America has to offer enticing incentives beyond alarming partners about the perils posed by a rival’s near-monopoly on rare earths and overcapacity. 

Less optics, more execution 

The second hurdle is continuity. Pax Silica is not the first major U.S. initiative intended to counter China’s burgeoning economic clout. The Blue Dot Network, rolled out in 2019, aimed to certify projects to access a diverse pool of funds, thereby providing an alternative to China’s largely state-backed BRI finance. It morphed into the Build Back Better World (B3W) in 2021 and rebranded as the Partnership for Global Infrastructure and Investment (PGII) the year after. But beyond adopting standards and principles, these pitches did not lead to a pipeline of projects. In 2020, the U.S. also proposed the Economic Prosperity Network to restructure supply chains disrupted by the COVID-19 pandemic. The Indo-Pacific Economic Framework (IPEF), launched in 2022, was seen as America’s counteroffer to free trade agreements (FTAs), which have become unpopular at home, but which regional partners hope to see as the economic largesse that complements deepening alliance ties. None of these proposals made much headway. 

In contrast, China’s BRI, criticisms and all, has delivered concrete projects. These include highways, a mass transit system, coal power plants, and fiber optic cable under the massive China-Pakistan Economic Corridor (CPEC). In Southeast Asia, notable completed projects include the Laos-China railway and Jakarta-Bandung high-speed rail (HSR). Malaysia’s East Coast Rail Link, set to open next year, and the ongoing Thailand-China HSR construction are also part of BRI’s broad portfolio. In an apparent role reversal, while Washington retreats from globalization, Beijing doubles down on promoting free trade, ratifying its membership in the Regional Comprehensive Economic Partnership (RCEP) in 2021 and upgrading its trade accord with ASEAN last year. In 2021, Beijing also applied to join the Digital Economy Partnership Agreement (DEPA) and a free trade pact that the US used to champion, the Trans-Pacific Partnership (TPP), which was rechristened as the Comprehensive and Progressive TPP (CPTPP) in 2018. The U.S. also ceded leadership in green energy and mobility to China by rolling back incentives for renewables and electric vehicles in favor of fossil fuels. Hence, Pax Silica needs to do better. Restoring the credibility of U.S. economic pitches is on the line. 

Even in the Philippines, site of the proposed debut Pax Silica project, U.S. pledges fell short. The $300 million acquisition by American private equity firm Cerberus of the former Hanjin shipyard in Subic, which filed for bankruptcy in 2019, was billed as the biggest public-private partnership in the 75-year history of Philippines-U.S. relations. But while the investment may have forestalled a possible Chinese takeover of the insolvent enterprise, the deal failed to revive the shipyard’s fortunes until another Korean company with a solid shipbuilding track record, HD Hyundai, entered the equation in 2024. In 2022, when Vice President Kamala Harris visited Manila, the US proposed a menu of initiatives, such as developing a nickel and cobalt processing facility and a geothermal power plant in Mindanao. Not much has been heard about these promises since then. 

Pax Silica can be transformative. Washington’s desire to break Beijing’s stranglehold on critical minerals can dovetail with partners’ desire to diversify markets and investors and grow their own industries. It makes sense for the Philippines, eager to catch up with fellow ASEAN peers, to offer attractive concessions to secure a potentially groundbreaking deal. Negotiation delays, whether efficiency-seeking firms will follow their governments, and leadership changes are variables that cannot be ignored. For instance, elections in Pax Silica members and non-signatory participants, such as the U.S., Philippines, and Taiwan, in 2028 may affect investors’ calculus. For sure, the initiative has stirred interest. Building urgency may be the next step. But the most important work is to ensure that proponents stay committed. Absent continuity and endurance, Pax Silica may worryingly join a growing number of U.S. initiatives that did not measure up.

About Lucio Blanco Pitlo III

Lucio Blanco Pitlo III is a Research Fellow at the Asia-Pacific Pathways to Progress Foundation. He was a lecturer at the Chinese Studies Program at the Ateneo de Manila University and the International Studies Department at the De La Salle University and contributing editor (Reviews) for the journal Asian Politics & Policy. He is also a member of the Board of Directors of the Philippine Association for Chinese Studies. He obtained his Master of Laws from Peking University and a MA International Affairs at American University in Washington D.C.

View all posts by Lucio Blanco Pitlo III →

Saturday, June 13, 2026

China-ASEAN Blue Economy Common Market: Pursuing Maritime Cooperation And Ocean Governance In The Evolving Global Geopolitical Landscape – Analysis

June 13, 2026 
By Rommel C. Banlaoi


Building a China–ASEAN Blue Economy Common Market is a strategic, developmental, and geopolitical endeavor, as it directly addresses issues of maritime cooperation and ocean governance in shaping the future of Asia and the wider Indo-Pacific region. The seas serve as lifelines for trade, energy, and connectivity, and their sustainable management is essential to regional prosperity. By advancing collaborative frameworks in fisheries, shipping, marine conservation, and disaster response, China and ASEAN, through the Blue Economy Common Market, can transform the ocean into a shared domain of peace and development.

The Asia-Pacific has emerged as the epicenter of global power competition. Maritime disputes, freedom of navigation, and resource exploitation underscore the urgent need for cooperative governance mechanisms. We are living in an era of strategic uncertainty shaped by a major power transition and the contest for influence across critical sea lanes. The global order is no longer unipolar as it is evolving into a multipolar, fluid, and contested system driven by the phenomenal rise of China, India, and other emerging powers.

In this shifting landscape, a Blue Economy Common Market, anchored in maritime cooperation and ocean governance, could serve as a stabilizing force, offering a vision of shared prosperity amid geopolitical flux.

Great Power Rivalry

The United States and China are now locked in a rivalry that spans trade, technology, security, and ideology. The European Union and other major powers are also asserting influence. Regional organizations like the Association of Southeast Asian Nations (ASEAN) are striving to maintain centrality amidst many regional security challenges in both traditional and non-traditional fields.

Economically, global growth is slowing as a consequence of US-Iran War. Supply chains are being restructured because of various regional trade arrangements like the Regional Comprehensive Economic Partnership (RCEP), the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the China-ASEAN Free Trade Area (CAFTA). Technological bifurcation is accelerating due to US-China major power competition. The COVID-19 pandemic already exposed global vulnerabilities in logistics. Now, climate change and energy transitions are reshaping industries worldwide.

Maritime cooperation and ocean governance in Southeast Asia through the Blue Economy Common Market present both urgent risks and transformative opportunities. Fragmentation and great power competition threaten to destabilize the region, while environmental pressures such as overfishing and climate change compound these challenges. These overlapping risks underscore the need for collective action and highlight the vulnerability of Southeast Asia’s maritime domain to both geopolitical and ecological stressors.

Yet ASEAN’s centrality offers a way to stability, enabling the bloc to act as a convenor that promotes dialogue, integration, and sustainable development. Through initiatives like the Blue Economy Common Market, ASEAN can transform contested maritime spaces into cooperative zones, harmonizing regulations, fostering joint research, and advancing ocean industries. In doing so, ASEAN, in collaboration with China, strengthens resilience, protects ecosystems, and positions itself as a global leader in ocean governance.

Impacts of the Blue Economy Common Market

The China–ASEAN Blue Economy Common Market represents a transformative vision for maritime cooperation, where nations treat ocean resources as shared endowments requiring protection and sustainable use. By integrating industries such as fisheries, shipping, tourism, and renewable energy, the initiative seeks to diversify regional economies beyond traditional manufacturing. This diversification not only strengthens resilience but also fosters innovation in marine biotechnology, aquaculture, and green shipping technologies.

The Common Market’s emphasis on supply chain stability is important. By encouraging joint investment in ports, shipping networks, and digital maritime infrastructure, the framework builds shared capacity to withstand future shocks. Whether disruptions arise from geopolitical tensions or global crises, coordinated maritime connectivity ensures smoother trade flows and greater resilience. This collective approach transforms vulnerabilities into opportunities for stronger regional integration.

Finally, the initiative advances a deeper sense of interdependence between China and ASEAN, reinforcing a vision of a shared future in the Indo-Pacific. By incorporating cooperation into ocean governance and economic development, the Common Market strengthens trust, reduces conflict potential, and promotes collective security. In doing so, it positions maritime cooperation not merely as an economic strategy but as a cornerstone of sustainable development and long-term regional stability.

Challenges Ahead

However, the journey forward is full of challenges because of several interrelated factors.

Geopolitical rivalries, particularly the intensifying U.S.–China competition, may cast the Common Market as a strategic alignment, which in turn could invite counterbalancing measures from other global powers. Economic uncertainties also loom large, as inflation, energy transitions, and technological decoupling threaten to disrupt maritime industries and undermine stability. Environmental pressures add another layer of complexity, with climate change and ecological degradation posing significant risks to sustainability and long-term resilience. Finally, institutional limits within ASEAN’s consensus-driven model may slow progress, while differing national interests could complicate efforts at harmonization and collective action.

These challenges underscore the strong need for strategic foresight, institutional innovation, and confidence‑building measures among participating economies.

The Philippines as a Bridge

In this context, the Philippines occupies a unique geopolitical position. As a treaty ally of the United States and a close neighbor of China, the Philippines can serve as an important bridge in U.S.–China great power relations. This bridging role is crucial to creating a conducive geopolitical environment for the success of the China‑ASEAN Blue Economy Common Market.

The Philippines can also advance ASEAN’s centrality by syncing maritime cooperation and ocean governance into its regional strategy, ensuring it is not forced into difficult choices between major powers. This means initiating trilateral dialogues with China and the United States on maritime security and economic cooperation, while also promoting joint blue economy projects such as sustainable fisheries management, renewable energy ventures, and marine biodiversity protection. These initiatives would highlight the Philippines’ role as a bridge-builder, reduce tensions, and demonstrate leadership in balancing ecological sustainability with economic growth.

At the same time, Manila can pursue confidencebuilding measures in the South China Sea, including cooperative marine environmental protection, disaster response coordination, and joint scientific research. By leveraging ASEAN platforms, the Philippines can institutionalize U.S.–China engagement in ways that support regional stability and economic integration.

Alignment with the Code of Conduct

It is very important to align the China‑ASEAN Blue Economy Common Market with the ongoing negotiation and eventual conclusion of the Code of Conduct (COC) in the South China Sea. The COC serves as a confidence‑building mechanism that can provide the normative foundation for cooperative maritime development.

By synchronizing the Blue Economy initiative with the COC, China and ASEAN can ensure that economic integration is underpinned by rules‑based order, maritime stability, and peaceful dispute management. This alignment will strengthen trust, reduce tensions, and create a secure environment for sustainable economic growth in the region. In this way, the Blue Economy becomes not just an economic vision, but a regional peace‑building strategy.
Key Tasks and Measures

To advance under these conditions, several interconnected tasks are paramount.

First, an institutional framework must be established through the creation of a ChinaASEAN Blue Economy Council. This body would serve as the central mechanism for coordinating policies, setting standards, and resolving disputes, ensuring that cooperation remains structured and effective.

Another important measure is infrastructure connectivity, which involves developing smart ports, green shipping corridors, and digital maritime platforms. These innovations would enhance efficiency, reduce environmental impact, and strengthen regional trade links.

A strong emphasis on sustainability is also essential. This means committing to marine conservation, investing in renewable energy, and pursuing carbon reduction strategies to safeguard ecosystems while supporting long-term economic growth.

To make these ambitions feasible, financial support must be secured. A dedicated Blue Economy Fund could provide resources for small and medium enterprises, foster innovation, and build capacity across the region.

Finally, peopletopeople linkages are vital. Promoting academic exchanges, maritime education, and joint research initiatives would deepen mutual understanding and cultivate the expertise needed to sustain the blue economy for future generations.

Transforming the vision of a China–ASEAN Blue Economy Common Market into reality requires integrating maritime cooperation and ocean governance, while carefully navigating the region’s geopolitical complexities, particularly in the context of the Hainan Free Trade Port.

The Role of Hainan Free Trade Port

Hainan Free Trade Port is strategically positioned at the heart of the South China Sea, serving as a vital gateway to ASEAN. Its location along one of the busiest maritime routes in the world allows it to facilitate shipping, logistics, and cultural exchange, while also playing a role in regional maritime security. This geographic advantage makes Hainan a natural hub for advancing connectivity and cooperation between China and Southeast Asia.

Policy innovations further strengthen Hainan’s role. With preferential tariffs, streamlined customs, and liberalized investment regimes, the port offers a business-friendly environment that attracts global investors and fosters cross-border trade. These measures not only reduce barriers but also create a platform for testing new governance frameworks that can later be scaled across the region.

Economically, Hainan is diversifying into marine biotechnology, ocean tourism, and renewable energy, positioning itself as both an innovation laboratory and a demonstration site for China-ASEAN maritime connectivity. By showcasing sustainable practices and cooperative governance, Hainan can act as a bridge of cooperation, setting standards for ocean governance and maritime collaboration that benefit the wider Asia-Pacific region.


Conclusion


The ChinaASEAN Blue Economy Common Market represents far more than a conventional trade framework. It is also a bold geopolitical vision designed to anchor resilience, sustainability, and integration across Asia’s maritime sphere. By weaving together economic cooperation with ocean governance, it seeks to transform the IndoPacific into a zone defined not by rivalry but by collaboration. Its urgent mission is to craft a maritime future that is cooperative, sustainable, and inclusive, one where shared prosperity flows from the responsible stewardship of oceans and seas.



Updated and revised version of a Plenary Speech delivered at the China-ASEAN Blue Economy Cooperation Dialogue: Building a Strategic Hub for the China-ASEAN Blue Economy Big Common Market — The Strategic Task of “Creating a New Maritime Hainan” hosted by Hainan Institute for Free Trade Port Studies, China Oceanic Development Foundation, and China Foreign Affairs University with the support of China Institute for Reform and Development (CIRD) and co-organized by Hainan Reform and Development Research Foundation and Huayang Center for Maritime Cooperation and Ocean Governance held in Haikou, Hanan, China on 10 May 2026.


About Rommel C. Banlaoi
Rommel C. Banlaoi, PhD is the Chairman of the Philippine Institute for Peace, Violence and Terrorism Research (PIPVTR) and President of the Philippine Society for International Security Studies (PSISS). He is currently a Non-Resident Fellow of the Huayang Center for Maritime Cooperation and Ocean Governance and member of the Board of Directors of China Southeast Research Center on the South China Sea (CSARC) and Director of Philippines-China Studies Center. He served as the President of the Philippine Association for Chinese Studies (PACS) and member of the Management Board of the World Association for Chinese Studies (WACS).

View all posts by Rommel C. Banlaoi →

Friday, February 13, 2026

NAFTA 2.0
Better to have separate U.S., Mexico agreements if CUSMA collapses: trade lawyer

ByAnam Khan
Published: February 12, 2026 

Lawrence Herman, international trade lawyer at Cassidy Levy Kent LLP, joins BNN Bloomberg to discuss the likelihood of U.S. ending CUSMA.

Separate bilateral agreements could still be beneficial if the Canada-United States-Mexico Agreement (CUSMA) falls apart, explains an international trade lawyer.

His comments come after reports that U.S. Trade Representative Jamieson Greer suggested this week that the U.S. is considering negotiating separate trade deals with the two countries rather than maintaining the trilateral pact up for review on July 1.

The possibility of this even happening was envisaged from the very start, when there were talks of CUSMA coming under review, Lawrence Herman, international trade lawyer at Cassidy Levy Kent LLP, told BNN Bloomberg.

Herman said separate bilateral deals would not be easy, but could be done.

“There are a lot of provisions in the CUSMA that could be used in a bilateral agreement with Canada, as well as a separate bilateral agreement with Mexico,” said Herman.

‘We will have an aggressive partner on the other side’

Negotiations will be difficult whether they are three-party or bilateral between Canada and Mexico, said Herman.

“The point is, we will have an aggressive partner on the other side,” said Herman.

“I think Canada has to be prepared to say, you know, these are the red lines, and there are certain things that Canada cannot accept.”

At the end of the day, he said Canada must decide how much longer it can remain at the table if the other party is unwilling to reach a mutually satisfactory arrangement.

“The priority is to ensure that we get out from this volatile, uncertain, unstable relationship,” said Herman.

He also said many major companies in the U.S. are dependent upon free trade and fair trade with Canada, highlighting Michigan Governor Gretchen Whitmer’s recent pushback after U.S. President Donald Trump threatened to block the opening of the Gordie Howe International Bridge. She called it “a really important part of our economy.”

‘Canada has been regrettably wedded to the U.S. market’


Canada has opportunities to expand in other markets, and the government has been looking at those opportunities to diversify its trade, but the reality is, “Canada has been regrettably wedded to the U.S. market,” said Herman.

“It is always a bad business practice to be so dependent on one customer, because that customer can turn ornery, as this customer, the U.S. has done so,” said Herman.

“There are so many things that tie Canada and the U.S. together that I cannot see things going forward without some kind of agreement.”

Canada is already in another agreement with Mexico


Herman noted that Canada and Mexico already have a trade agreement outside of CUSMA called the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes 11 Pacific Rim countries. The U.S. withdrew from the original agreement in 2017.

“Mexico is party to the CPTPP, and so there would be an ongoing arrangement between Canada and Mexico,” said Herman.

He also said it would be better to have a straight bilateral agreement if the whole trilateral CUSMA falls apart.


Anam Khan

Journalist, BNNBloomberg.ca


Former U.S. State Department official optimistic CUSMA will be renewed

ByThe Canadian Press
 February 11, 2026 

A lapel pin featuring the flags of Mexico, the United States, and Canada, is seen on the jacket of a speaker at the 2024 North American Manufacturing Conference, in Ottawa, on Wednesday, Nov. 20, 2024. THE CANADIAN PRESS/Justin Tang

CALGARY — A former U.S. State Department official says he’s optimistic the Canada-U.S.-Mexico free trade agreement will be renewed.

Edward Fishman, author of “Chokepoints: American Power in the Age of Economic Warfare” shared his outlook during a luncheon hosted by the University of Calgary’s Haskayne School of Business.

The Columbia University adjunct professor says he can imagine Canadians feel like “sitting ducks” as their closest trading partner bombards adversaries and allies alike with tariff threats.

But he says the trading relationship doesn’t just flow one way and the U.S. would suffer significant economic harm if trade with Canada were to be cut off.

Fishman says U.S. political and business leaders — even those with a conservative bent — feel strongly about the importance of cross-border trade and are likely to temper President Donald Trump’s daily whims.

He says the countries that have been best able to withstand U.S. tariffs have been the ones that have shown the most resolve, resilience and willingness to retaliate, citing India, Brazil and China as examples.

This report by The Canadian Press was first published Feb. 11, 2026.

Lauren Krugel, The Canadian Press


‘He says different things at different times’: Hillman on whether Trump wants to keep CUSMA

By Spencer Van Dyk
February 08, 2026 
Former Canadian ambassador to the U.S. Kirsten Hillman. (Allen McInnis)

Amid a year-long trade war, Canada’s outgoing ambassador to the United States says she doesn’t know whether U.S. President Donald Trump hopes to keep the Canada-U.S.-Mexico Agreement (CUSMA) in place, because his messaging around the deal has been inconsistent.

The agreement, inked during Trump’s first term, is up for review this year. In 2018, Trump called it the “most modern, up-to-date, and balanced trade agreement in the history of (the United States),” but just last month called it “irrelevant.”

“I don’t think I can answer that question,” Kirsten Hillman told CTV Question Period host Vassy Kapelos in an interview airing Sunday, when asked if she believes Trump wants to keep CUSMA in place.

“I think if the president has a strong view around the U.S. being able to do more itself, how that translates with respect to this treaty, I don’t know,” she added. “He says different things at different times.”

U.S. President Donald Trump, left, pumps his fist as he is greeted by Kirsten Hillman, Canadian Ambassador to the United States, right, as he arrives in Calgary, Alta., Sunday, June 15, 2025, to attend the G7 Leaders meeting taking place in Kananaskis. THE CANADIAN PRESS/Jeff McIntosh

The U.S. and Canada remain in the throes of a trade war, which began last February when Trump imposed a slate of sweeping tariffs on Canadian imports.


Hillman, meanwhile, announced in December she would be stepping down as ambassador to the United States. She has represented Canada in D.C. for nearly six years and played a lead role in the renegotiation of the North American Free Trade Agreement (NAFTA) before that.

“I think for Canada, what’s important is that we just keep working consistently with those — and there are so, so many of them in all three countries — that understand factually why that treaty keeps American business more competitive, creates more jobs and keeps their economy in a good place,” Hillman said of the future of CUSMA. “And I think that a lot of people are getting that message to the president.”

Goldy Hyder, President and Chief Executive Officer of the Business Council of Canada, makes remarks at the Canadian Global Affairs Institute Procurement Conference, in Ottawa, on Monday, Nov. 25, 2024. THE CANADIAN PRESS/Justin Tang

In an interview for CTV Question Period last month, Business Council of Canada president and CEO Goldy Hyder said he’s optimistic, based on his dealings with U.S. officials and business leaders, that CUSMA can be salvaged despite recent rhetoric.

“Yes, there’s a lot of noise; it’s not straight line,” he said. “Yes, it’s going to be complicated to get there. But there’s a recognition that this agreement is important for all three countries.”

And, this week, Conservative MP — and longtime friend of U.S. Vice-President JD Vance — Jamil Jivani travelled to Washington for a solo diplomatic mission to meet with senior U.S. officials, calling the conversations “productive.”

Asked if she were staying in the ambassador role, what would be keeping her up at night, Hillman said Canada has to “find a way to have serious, professional, technical trade discussions with the Americans,” while working toward making the Canadian economy more self-reliant.

“I think we need to not take our foot off the gas on either of them, while at the same time trying our best not to get knocked off course by the inevitable sort of distractions and diversions that always come up here in Washington,” Hillman said.

‘Geography can’t be undone’: Hillman

Asked to reflect on her time as ambassador and the state of the Canada-U.S. relationship, Hillman said it’s important people understand the degree of interaction and co-operation between the two countries’ administrations.

She said 13 different ministries are represented at Canada’s embassy in Washington, pointing to transport, energy, environment and finance as examples.

“Something comes up every day, and it’s not always problems,” she added. “Often it’s good things that we’re trying to celebrate, that we’re doing together.”

“I think geography can’t be undone,” Hillman also said, when asked whether that interconnectedness and interdependence is hard to undo.

Ambassador to the United States Kirsten Hillman, left, and Intergovernmental Affairs Minister Dominic LeBlanc prepare to leave following a meeting between Prime Minister Mark Carney and U.S. President Donald Trump at the White House in Washington, D.C., Tuesday, May 6, 2025. THE CANADIAN PRESS/Adrian Wyld

The outgoing ambassador said while there are “a lot of feelings” and “a lot of disruption” in the relationship because of Trump’s policies, people-to-people ties “are deep and wide.”

“I don’t think we’re going to go back to where we have been in the past with the United States,” she said. “I don’t think that’s necessarily a bad thing.”

“I think, in large part, both of our countries took each other for granted,” she added. “I don’t think that’s the case anymore, but that doesn’t mean that those relationships that are so broad and deep won’t continue to be a source of inspiration as we chart whatever this new path is with our neighbour.”

After she officially wraps up her tenure as Canada’s ambassador to the U.S. this month, Hillman is set to return to Ottawa, though she has not announced which role she’ll take on next.

Canadian ambassador to the U.S. Kirsten Hillman, Prime Minister Mark Carney and Canadian financier Mark Wiseman are shown in this combination photo.

Canadian business executive Mark Wiseman is set to take on the role of Canada’s ambassador to the United States later this month.


With files from CTV News senior political correspondent Mike Le Couteur

Spencer Van Dyk
Writer & Producer, Ottawa News Bureau, CTV News

Tuesday, February 10, 2026

Carney and Thucydides at Davos


 February 10, 2026

Thucydides Mosaic from Jerash, Jordan, Roman, 3rd century AD at the Pergamon Museum in Berlin – Public Domain

You gotta love a speech that opens with Thucydides.

For those of us steeped in the ideas of George Kennan, Canadian Prime Minister Mark Carney’s call for “value-based realism” and a “third way” of middle powers at the Davos Summit, sounded too good to be true. On its face, it was a great speech, a call to arms with Canada in the lead. Carney is being hailed as “Churchillian” and the “new leader of the Free World,” his speech, “historic”—one for the books. But how realistic is his realist prescription? Let’s hope that he understands the implications of his1 Thucydides quote.

At last, I thought, a national leader who speaks my language. Carney blew the lid off of the “rules-based international order” that gave us 80 years of undeclared wars of choice, dozens of regime change efforts, and the de facto imperialism, disparities, and wage slavery of economic globalization. He spoke of not going back, of a “rupture” with a past that he called out as the emperor’s new clothes enabled by the “go along to get along” compliance of second-tier nations. He shamed European nations for their fealty and offered a plausible-sounding middle way of “greater strategic autonomy” for middle nations based on a diversified scheme of “principled pragmatism” and a “variable geometry” of alliances. A brave man, I thought, an honest and rational man—a man with a plan.

Shattering the possibility of a return to the recent past of middle-powers subservience, he starkly heralded the arrival of the new world order we already knew was here and stood up to the U.S. administration without mentioning names. Since Davos, he has reaffirmed his position. And yet Carney seems unaware of a powerful internal contradiction in his vision that could scuttle it: Realism is based in part on the idea of bilateral agreements of independent sovereign nations acting unfettered in their own interests. But in order to be effective, the middle powers would presumably have to band together into an aggregated great power through multilateral agreements tailored to the interests of its constituent nations. He also spoke of linking the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with the European Union (EU), which sounds like the very apotheosis of multilateralism.

Under the neoliberal world order, multilateralism had been a part of the problem, yet in order for Carney’s plan to work, middle nations would have to comprise one of the poles of the emerging multipolar world by becoming a united front conglomerate speaking with a single voice. This is because there is safety and power in numbers, and by definition, middle powers fill the gap between great powers and the lesser powers. They tend to be technologically advanced with prominent middle classes, but are smaller than the monster nations. Too small to “go it alone,” they would have to enter into a multilateral pacts of “variable geometry,” depending the agreement and its signatories. Such a league would also, by the Prime Minister’s account, act as a brake on hegemonic rivalries. Medium-sized nations would also have to do business with the monster nations as sovereign states (as witnessed by Canada’s new “strategic partnership” with China), even though Carney admits that great powers typically have the advantage.

Someone who has already identified this problem of middle states acting as unencumbered sovereigns, is the University of Chicago professor and standard-bearer of neorealism, John Mearsheimer. Mearsheimer’s school of offensive realism, holds that the direction and nature of the global order is determined by the competition of great powers, and not by leagues of middle-tier nations. The question is whether or not Mearsheimer is right in this overarching observation.

I prefer Kennan’s brand of realism based on intuition, a broad, deep, and nuanced understanding of history, culture, and human nature, to the determinism of Mearsheimer (to be fair, Mearsheimer’s vision is also based on a profound historical understanding). If Mearsheimer was merely saying that the world tends to be governed by the rivalries of great powers, I would tend to agree with him. If he was saying that great powers act most effectively when they act in the moderate and rational furtherance of their perceived interests, or that they usually do (or do not at their own peril), then I would also agree with him. If by contrast, he is asserting a law-like “hidden hand” phenomenon at work, like the physical constants of physics, then I say that his view is too mechanistic, too historicist for the real (read: chaotic) world. As Oliver Wendell Holmes, Jr., a realist in the law, observes in a different context that “General propositions do not decide concrete cases.” Piecemeal problem-solving is preferable to grandiose meta theories.

That said, and in spite of his broader views, I have found that Mearsheimer is usually spot on in his proximate analyses of events large and small (his 2014 Foreign Affairs article, Why the Ukraine Crisis is the West’s Fault,” predicting a war with Russia over Ukraine in response to the eastward expansion of NATO, has proved prescient, as have his analyses of events in Ukraine since the Russian invasion). But the central tenet of objective realism is too deterministic and does violence to the complexities of a disorderly world based on power struggles that are guided, not only by reason and interest, but also on ideology/eschatology, “morality,” human caprice, and irrationality. Error is frequently a driver of events, and history is as much of sequence of screwups as successes. The human world is not governed by mechanistic principles or “laws” of history, but by currents and tendencies, which may be strong or weak. Human interaction is both a randomizing factor as well as an ordering principle, and history takes on a will of its own that is beyond human intentions.

But let us assume for a moment that Mearsheimer’s historical Newtonianism holds true in this instance—that middle nations cannot run the table as individual players or as brokers of consolidated power. This would mean that they would have to act collectively as a league of sort of powerful states. As retired Colonel Douglas Macgregor recently observed, NATO—that great pact of middling vassal states—was (and is) too diverse in its interests and agendas to function effectively: “NATO remained exactly what it was: a chorus of competing voices that could not agree on much of anything.” The impotence of the NATO’s “limited liability partnership” in respect to the Russo-Ukrainian War, is just a recent example of Macgregor’s point (on a side note, Carney’s ”coalition of the willing”—which is willing to fight to the last Ukrainian—sounds a lot like the phenomenon he is criticizing, but let that go). Macgregor’s criticisms of an overly-diverse military alliance may find parallel in economic alliances of self-interested middle powers a la Carey.

The question then is whether or not Mearsheimer’s great powers principle and Macgregor’s observation on the inverse relationship of nation interest diversity and efficacy, apply to the present case and whether great powers geopolitics will preclude Carney’s prescription. In the words of the Zen master in the parable from Charlie Wilson’s War, “We’ll see.”

The Thucydides Trap

Carney’s Thucydides quote that “The strong do what they can, and the weak suffer what they must,” must be taken in the context of another famous quote by the Greek historian on the cause of the Peloponnesian War: “The growth of the power of Athens, and the alarm which this inspired in Sparta, made war inevitable.”

This illustrates another dynamic at play in the world—another inverse relationship—that is sometimes called the “Thucydides Trap” (or as I used to call it: the Problem of the Declining Hegemon). It refers to the inherent danger of periods in which a waning hegemon is confronted with a rising or reinvigorated hegemon, and tends to support Mearsheimer’s position. In Greece in 431 BC, the rising power was Athens and the declining power was Sparta. In the first half of the 20th century, the declining hegemon was the British Empire and the rising powers were Germany and Japan (and the US as an industrial trading partner of Britain). This was also the period of the World Wars.

Today the declining hegemon is the United States. As it slides into political decadence and senescence, we can only imagine where the Lear-like policies at home and abroad will lead. The primary rising power is China, in cooperation with Russia, Iran, and perhaps India. These powers would have competed with the West for the favor and resources of the Global South as the Earth’s biosphere continues to degrade. But now Carney has made a unified Western alliance problematic by encouraging its intermediate constituent states to peal off from the occidental pole.

With the help of erratic U.S. policies, the West could split, with modern, technologically-advanced nations like Canada and Australia poised to go their own way or as leaders of “variable geometry” alliances of similarly-situated nations. But will it work? After all, the most subservient client states of the United States—those of Western Europe—appear to have stood up to the U.S. over Greenland. But was this a one-off? Was the rhetoric over Greenland a bridge too far, even for Western Europe? With an American president who seems content to abandon Europe, could Canada realistically position itself as the senior partner of the NATO alliance? We’ll see.

We know of Canada’s new trade treaty with China, but as a general program, we need details of what the third way is and how it is supposed to work. Would the middle nations compete or cooperate or would they adhere to one of the oldest realist tenets of all: nations compete when they must and cooperate when they can. Would they band around one of the poles of the great powers, and if so, how would what would be a new approach? Would Carney’s third way provide the basis for a BRICS-like league for middle powers? Would it be a balancing factor or a potential spoiler in the competition of great powers? We need more answers on how the new way will work if we are to assess if it will work.

If I had to guess, I would say that Carney’s middle way will not fully materialize in the way he would like, and that the tenet of Thucydides he quoted, if extrapolated, will hold true, that in terms of power, middle nation are just better versions of lesser powers, and diverging interests will undermine any effort for them to assert themselves en masse as a collective great power. Another possibility is that the differing interests of middle powers will form an elaborate, overlapping, kaleidoscopic array of ever-shifting alliances and “buyers’ clubs” depending on the specifics of interests and threats in question. Whether such a busy system of alliances will work is anybody’s guess.

A final possibility is that Carney and Canada will lead the charge and nobody will follow. When Theodore Roosevelt gave the initial order to attack the Spanish forces on Kettle Hill, only five men followed because they could not hear him over the din of battle. The difference is that everybody heard Carney at Davos. To be fair, Roosevelt and his men took Kettle and San Juan Hills (at the cost of one fifth of the regiment). Is Carney a new Churchill or TR? We’ll see.

The world order is shifting with abrupt ruptures from the past and a United States that appears to have taken the Madman Theory of foreign policy taken to a chaotic extreme. With China on the ascendance, and the U.S. in what appears to be in a state of steep and perhaps permanent decline, which will win the the Global South? Let’s hope that the middle nations of the West and Pacific rim will embrace Carney’s proposal, and that combinations of them can allow their members to punch above their weight as a force for stability and sanity in the world.

Of course the overarching question is whether or not an increasingly volatile U.S. can navigate the new geopolitical seas in peace. Russia has shown great restraint vis-a-vis Western meddling in the proxy war on its front doorstep. Likewise, the Western Pacific, where Mearsheimer and others believe a great powers struggle with China might be in the offing in the future, is currently pacific. By contrast, as Macgregor asks, “Who has stopped, boarded, and seized a [foreign-flagged] commercial vessel? We have.”

Conclusion

The emerging world order, like a great Shakespearean tragedy, denotes a crisis-within-a-crisis: a shift of power away from the United States as other powers rise and allies are driven away. This shift exists within the greater crises of the environment. If the world is to effectively address these existential crises, it will require a critical mass of great, medium, and lesser powers cooperation. As I have written elsewhere, the world can no longer afford the infantile rivalries of the Great Game. The problem with the Great Game is the game itself.[1]

It is a tall order for a great speech, even one beginning with Thucydides, to launch a new geopolitical era. And if successful in doing so, there is no guarantee that the new order will play out anything like the way the author intended. Given the greater crises that loom above humankind and which now threaten us all, what would be the impact of Carney’s middle prong of the new world order? If it materializes, it could provide a source of moderation and balance in the world. Or it could be just another axis in a balkanizing world order at a time when greater cooperation is needed. We can hope for the best, but should not expect it. We shall see.

NOTES

1. See Michael F. Duggan, “Realism and Regionalism: The United States in a Multipolar World,” Chicago Journal of Foreign Policy, April 24, 2024. ↑

Michael F. Duggan blogs at  realismandpolicy.com.