At the APEC CEO Summit 2024, Canadian Prime Minister Justin Trudeau emphasized that while trade drives economic growth, it does not automatically ensure that everyone benefits from it. This, he said, is something that must be ensured when negotiating Free Trade Agreements: protecting the environment, women’s rights, labor rights and indigenous peoples. Trudeau spoke during a panel alongside Mary Ng, Canada’s Minister of Export Promotion, International Trade, and Economic Development.
Trudeau argued that the economic rationale for inclusive trade lies in ensuring that everyone feels the benefits, fostering ‘win-win’ relationships in trade negotiations.
“The moment people feel that trade hasn’t benefited them at all, a ‘win-lose’ framework emerges. What we need to ensure is a ‘win-win’ not just for the two countries involved, but for the multiple nations participating in large trade agreements,” Trudeau said.
He also announced the completion of Canada’s latest FTA with Indonesia, highlighting it as a signal of progress amid global protectionism and uncertainty.
“The country is making a move that shows even in times of protectionism and insecurity, there are opportunities to craft strong agreements that work,” he stated.
Minister Mary Ng wrote that, in the business community, trade must be seen as a way to bring growth to small and micro businesses.
“In Canada, adding more women to the economy would contribute $150 billion, and globally, $12 trillion. Trade works when everyone benefits—workers and all those represented across the value chain,” she explained.
On U.S. Trade Policies and NAFTA
Regarding how Donald Trump’s victory in the United States will impact FTAs, Trudeau noted that in 2016 he made a commitment to break one of the trade agreements in NAFTA – an agreement made by the US, Mexico and Canada that releases restrictions on trade. trade between the three countries – and this has had profound consequences in Canada, as well as in the North American economy, he added.
“At that time, there was a commitment to break apart one of the key pillars of NAFTA, and it had profound consequences for Canada and the North American economy,” he noted.
In response, Canada sought ways to modernize and adjust the trade relationship.
“Canada’s and America’s middle classes have been building together for decades and generations with tremendous success. It wasn’t easy then, and nothing will be easy this time. No U.S. administration is ever automatically easy for Canada. They always focus heavily on their own interests,” Trudeau emphasized.
Harnessing Artificial Intelligence (AI) for Global Growth
Trudeau also addressed Canada’s efforts to balance AI innovation with ethical use, ensuring it empowers people and businesses of all sizes.
“It’s not just about big companies investing massive amounts of money. The question is how we bring AI to small businesses and reassure people that AI can create better opportunities. We must ensure a framework in the democratic world aligned with shared values to make this effective,” he stated.
Trudeau compared AI’s transformative potential to that of electricity over 100 years ago, noting that it will impact every industry and job. The challenge lies in managing this disruption to minimize its impact on most people.
However, he highlighted energy as a major constraint for AI.
“The energy consumption required for AI has yet to be fully understood. Canada generates 80% clean energy, which attracts global companies for our workforce and resources. But how do we develop the clean energy needed? That’s a critical issue,” Trudeau explained.
Clean Energy and Nuclear Power
Minister Mary Ng added Canada with rapid economic growth and a young population, like parts of the Asia-Pacific, will need significant AI infrastructure for manufacturing, households, and climate change solutions.
“Canada is a leader in clean nuclear energy, and we know that if we are to meet our carbon reduction goals, nuclear energy must be part of the mix. Many APEC economies will play a role in this transition. We’re excited to be building nuclear plants in Canada and exporting clean energy,” she said.
