Transcription
United States President Donald Trump's tariffs remain a prominent global issue. Donald Trump imposed 25% tariffs on Canada and Mexico, and up to 10% and 60% on China. He later suspended tariffs on Canada and Mexico, though the self-imposed deadline for introducing trade tariffs on Canada and Mexico approached rapidly. We've been mistreated very badly by many countries—it's not just Canada and Mexico. US President Donald Trump has signed tariffs on imports from Canada, Mexico, and China. Canada—we'll see what happens with Canada—but the Canadian people would be paying less than half of the tax. The tariffs were expected to take effect on March 4th; Trump repeated this date several times. As the date approached, concerns increased, especially in Canada.
The Ottawa government even sought help from the European Union and China to mitigate the impact of the United States tariffs. Canadian officials allegedly updated plans to ship resources, including liquefied natural gas, to China. Canada's main goal, however, was improving relations with Europe, not increased trade with the United States. Canada and Italy have been frequently mentioned together recently. Experts suggest the two countries are reshaping their economic dynamics. Even the European Union is reportedly surprised by Canada's ties with Italy. Had Canada chosen Italy over the United States? What's the latest on Canada-Italy trade? What strategy was Canada pursuing with Italy to avoid US tariffs? We'll explore these questions. But first, please subscribe, turn on notifications, and like our video to stay updated—it's free! Now, back to our main topic.
Italy already has a strong presence in the Canadian market. Italy is interested in the food sector, positioning itself as an alternative supplier if the United States imposes trade restrictions and Canada retaliates. Analyzing Canada's food imports reveals Italian agri-food products hold a significant position after the United States and Mexico; Italy has even surpassed France, with exports worth $1.5 billion. Italy ranks third in trade with Canada after the United States and Mexico. Italian imports have been boosted by the Comprehensive Economic and Trade Agreement (CETA), which is provisionally implemented and has reduced customs barriers on many Italian agri-food products. In a scenario of US-Canada trade restrictions, CETA strengthens Italy's position in the food sector. If Ottawa diversifies its supply sources, "Made in Italy" products will benefit even more. Canada could increase its market share and consolidate Italy as a reliable trading partner. The Italy-Canada relationship has the potential to mitigate the impact of US tariffs.
To see this, consider Italy and Canada's 2024 trade network. Analyzing 2024 market shares reveals key areas where Italy could strengthen its presence if Canada imposes tariffs on US food imports. While Italy's export share of intermediate and final unpackaged food products is relatively low, packaged food and beverages offer opportunities. Italian export shares are comparable to the US in alcoholic beverages, milk, yogurt, cheese, oil, rice, and pasta. A comparison of Italian and US alcoholic beverage exports to Canada shows a steady increase in Italian exports since CETA's implementation in 2017; this growth has accelerated in the last two years, highlighting the quality of Italian wine. In a context of global trade instability fueled by Trump's tariff war, the Italian food sector could find growth opportunities in Canada, capitalizing on the tensions between Ottawa and Washington and the reputation of Italian products. Italian businesses can strengthen their presence in the Canadian market. In response to US protectionism, Italian companies could view these changes as advantageous and explore alternative markets. Italy could also significantly increase its friendly relations with Canada.
One element illuminating this relationship is the roadmap for enhanced cooperation between Italy and Canada. This roadmap aims to strengthen the relationship through collaborative efforts in areas of common interest. It reflects both countries' commitment to close cooperation in tackling global challenges, promoting sustainable prosperity, global stability, and the rule of law. This includes their respective G7 presidencies in 2024 and 2025. Italy and Canada have a strong trade and investment relationship with complementary economies that benefit from SMEs. There's room for growth in strategic sectors like critical minerals, semiconductors, aerospace, e-mobility, clean energy technologies, and life sciences. Italy and Canada are seeking deeper trade and investment ties, exploring cooperation and exchanging best practices, including promoting mutual information sharing between institutional investors. They are committed to strengthening business ties between SMEs, including through initiatives like the CDP business matchmaking platform launched in Canada in November 2023.
Italy and Canada are committed to promoting inclusive and sustainable economic growth with their African partners, seeking joint opportunities to advance the 2030 Agenda for Sustainable Development Goals and strengthen peace, development, and prosperity across the continent. This includes actions to strengthen sustainable food systems, access to quality education and healthcare, energy security, and physical and digital infrastructure. These actions align with Italy's Mattei Plan for Africa. Italy and Canada are encouraging further cooperation between their development finance institutions, Cassa Depositi e Prestiti (CDP) and Export Development Canada (EDC), including initiatives like the €150 million lending facility provided to the Banque Ouest Africaine de Développement (BOAD) to strengthen private sector support in West Africa. Within the G7 context, CDP and EDC are working with other G7 development finance institutions to strengthen cooperation and coordination.
The two countries collaborate in security and defense, thanks to the strong Canada-EU relationship. Italy and Canada contribute to global security by identifying opportunities for joint activities, including in cybersecurity and the climate-security nexus, and through cooperation between the Forward Land Forces Battlegroup in Latvia and the NATO Climate Change and Security Centre of Excellence in Montreal. Italy and Canada are increasing cooperation to strengthen cybersecurity, protect consumers and businesses, and reduce vulnerability to cyber incidents. They are working on international norms on responsible state behavior in cyberspace, as well as cyber capacity building initiatives and regulatory measures. They are also closely aligned within the G7 rapid response mechanism on monitoring, analyzing, and countering AI-led threats of foreign information manipulation and interference. Recognizing the transnational dimension of this phenomenon, Italy and Canada maintain close security solidarity in policing and combating organized crime, realized through a memorandum of understanding between the Italian Ministry of the Interior and the Royal Canadian Mounted Police, and bilateral agreements on mutual legal assistance and extradition. Both countries have strengthened their relations through the United Nations and mechanisms like Interpol and Europol.
On energy, Italy and Canada are committed to developing clean and renewable energy technologies to promote energy security, strengthen trade cooperation, and advance shared climate, biodiversity, and environmental goals, including achieving COP28 outcomes in line with G7 commitments. They aim to keep the 1.5-degree target within reach and pursue the clean energy transition. They continue to work together through initiatives like the Powering Past Coal Alliance to phase out coal power generation by the first half of the 2030s. Critical minerals are vital to achieving climate goals. Italy is considering joining the Alliance for Sustainable Critical Minerals, aiming to contribute to the expansion of bilateral economic, scientific, and technological cooperation. Italy and Canada continue their cooperation through multilateral forums, including the Critical Materials and Minerals Conference. Hydrogen is a promising fuel for net-zero emissions. Italy and Canada support a memorandum of understanding between the Italian Hydrogen Association and the Canadian Hydrogen Association, providing market advantages in hydrogen energy and fuel cell technology. They support sustainable fuels, including sustainable biofuels, to decarbonize hard-to-reduce and heavy-emitting industries. They continue cooperation through multilateral forums, including the IEA Bioenergy Technology Collaboration Programme, the Global Bioenergy Partnership, the Clean Energy Ministerial Biofuels Platform, Mission Innovation, the G20 Energy Transition Working Group, and the Global Biofuels Alliance. Carbon management technologies are important for the net-zero transition; Italy and Canada are committed to exploring cooperation in multilateral forums. In short, US tariffs on Canada have given Italy an opportunity. Italy and Canada have significantly increased bilateral relations. In the future, both countries may grow closer in terms of trade, allowing Canada to avoid US tax cuts implemented in March thanks to the bond developed with Italy. Thank you for watching.