SASKATOON — Premier Scott Moe said his government will take advantage of strengthening trade with other countries if U.S. President Donald Trump decides to pursue the proposed 25 per cent tariffs on all Canadian goods. Moe left to meet with Trump administration officials in Washington on Sunday, Feb. 9, and will travel to Mexico on Thursday, Feb. 13.
Last week, Trump delayed imposing the 25 per cent tariffs after Prime Minister Justin Trudeau agreed to beef up border security, appoint a fentanyl czar to monitor the smuggling of illegal narcotics between Canada and the United States, and place drug cartels on the terrorist watch list.
Moe said his government will continue engaging with U.S. political leaders and decision-makers to strengthen North America’s growing and integrated economy, particularly regarding food and energy security – two areas in which Saskatchewan plays a key role.
On Monday, Feb. 10, Trump imposed 25 per cent tariffs on aluminum and steel imports from all countries.
Moe has instructed Trade and Export Development Minister Warren Kaeding to meet with ambassadors and representatives from other key markets, such as Mexico, to form stronger trade partnerships with Saskatchewan. This is part of the province’s plan to reduce reliance on the U.S. and diversify exports by looking at other emerging markets.
“We need to engage further in the trade that we do and the exports that we provide to over 160 countries worldwide, and our trade and export minister is engaging. Again, we are going to focus not only on our engagement in the U.S. but also on using the contacts we have made over the last number of years around the world,” Moe said in an earlier interview.
“I would add that at times, we’ve been criticized for that engagement and the focus and priority we have put on growing our market share, export opportunities and investment attraction efforts in countries all over the world.”
He added that Saskatchewan plays a significant role in supplying food and energy security not just for the province and Canada, but for North America and more than 160 other countries. A potential trade war, if the Trump administration moves forward with the 25 per cent tariffs on Canadian goods after the 30-day pause, could impact Saskatchewan’s agriculture, energy and mining industries.
Saskatchewan is rich in natural resources. Its agriculture sector produces wheat, canola, barley, flaxseed and lentils. The province is also a major oil and gas producer and mines potash and rare earth minerals. The U.S.'s 25 per cent tariffs would impact producers and miners across the supply chain.
However, U.S. farmers could also suffer if the tariffs are implemented, as nearly 90 per cent of the potash they use – about nine million tonnes – comes from Saskatchewan. The good news for the province is that it remains the largest potash provider in the world, exporting nearly 25 million tonnes annually. Canada is the world’s top potash producer, with the largest potash mine located in Saskatchewan.
“We are a province that produces first, instead of transforming products. But we now export much more canola oil than canola seed. We're climbing the value chain for our agricultural products – higher-value products like split peas and lentils worldwide. We are finding our way up that value chain,” Moe said.
“You’re seeing investments in refineries in Lloydminster, Regina and Moose Jaw. It’s showing in our export value. In 2007, our export value in this province was about $17 billion. In 2018, that climbed to about $31 billion. In the last two years, it’s been about $49 or $50 billion each year. The export value is how we create wealth in our communities. We are an exporting province.”
Moe added that the province is also focused on attracting investments that would increase the value of Saskatchewan’s products and on forging relationships from a province-to-nation and province-to-industry perspective in key markets, such as China, India and the European Union.
