Feds face challenge of showing U.S. that Canada is strong ‘and making Canadians believe it’: analyst

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[00:00:00]We're going to have to make it quick everybody because we've had a lot going on today. But I'm going to start with you Dan. When you talk about the different framing that we're seeing right now from uh Dominic Lbel and all of this comes with a backdrop of this technical recession. Um how do you feel that this government is now trying to frame everything especially after a day of meetings with Jameson Greer?

[00:00:22]>> Well, I think the government's message today was that they're at the table, right? And I think that the positive news that we're hearing out of DC is that talks are no longer frozen, that there is a conversation underway.

[00:00:33]There's been a number of weeks and months of uh you know some news about uh the US and Mexico being at the table together. They have a very long list of issues that are particular irritants in the trading relationship between the USA and Mexico. Uh and a lot to work through there. I think Canada has a relatively shorter list. the USR has been public about what he sees as the irritants in our trade relationship. It's only a handful of things and so there's I think a little less for them to be uh at the table about and working through. But the message today was we are we are at the table. We're we're talking with our our counterparts in in Washington looking to get the best deal that we can for Canada that preserves as much of the existing free trading relationship. The reality is yesterday, President Trump was softening his stance on some key sectoral tariffs. Uh I think ahead of the midterms, Americans are feeling an affordability crunch like they haven't felt in in generations. And and that is a political reality that Canada has opportunity in. What's been going on with the war in Iran and uh the energy crisis that has resulted puts Canada in a position that's a bit different than we were a number of months ago. on it.

[00:01:42]So I think Canada is looking to be at the table, looking to be to be active in negotiations, but also not looking to seed any ground or seed any leverage that we have in this moment.

[00:01:52]>> Melanie, talk to me a little bit about that messaging around it and how Dominic Lela is framing it. Even Janice Shahet basically used the same type of type of language saying a strong Canada is good for North America and trying to continue to hammer home that message. At the same time, uh, you know, she had also said that they're trying to make sure that the talks that the Mexicans are having with the United States are not going to undercut what might be in the trilateral agreement. So, really working on many fronts here.

[00:02:21]>> So, the the message they're delivering that strong Canada is good for the North American economy is absolutely true. The problem is that it's not supported by what what's actually happening right now. The fact is Canada is in a recession and the United States views us as very weak as a result of that. The United States respects strength and so in negotiations with them we have to position ourselves from a position of strength and Mark Carney has had a year to do that and we are it feels like we are no closer to being a strong Canada.

[00:02:51]There have been a number of of policies and and changes that that the Carne government have made but none of them have actually borne fruit yet in the economy as evidenced by the fact that we are in a recession. So, I think that part of the message over the next couple of weeks uh as these as we get closer to more more intense levels of negotiations with the United States, we're going to see the federal government put out um more structural changes that that will help our economy. Things like the defense critical mineral strategy that's expected this month. Uh things like um sweeping changes to the impact assessment act that the government has been consulting on. That consultation window closes this weekend. I think we can expect to see some big announcements from them related to changes they're going to make to that legislation in the next week or so. Um, all of those are great structural changes, but they risk falling flat with everyday Canadians who are feeling the very real financial crunch of a recession and they aren't seeing any immediate response by this government. And their biggest challenge right now is both framing that narrative to the United States that Canada is strong and making Canadians believe it.

[00:03:55]And it's interesting, George, because even some of the framing that we heard today from uh the prime minister trying to sort of get into the into the weeds on, you know, what this recession is and how well we're doing or how well we're not doing. And then you even have Dominic Lablon saying that look, you know, he he used the analogy of a airline flight. I'm not going to say to the point of, you know, beating the horse here, but certainly he used it a lot uh and said that there, you know, there could be some turbulence ahead. I mean, a lot of this is essentially trying to reframe things and say, you know what, things don't look good now.

[00:04:28]And to Mel's point, to everyday Canadians, but things are coming.

[00:04:32]>> Yeah. I mean, I think you have Mark Carney to pick up the airplane analogy.

[00:04:35]Why not? Mark Carney's talking about the material that's that the plane's built out of and all the different things that are into the carpet and the seating and and the the stitching that that you're laying on. But all people really care about is that the flight doesn't crash and that and that they themselves can >> can get food and a drink uh along the ride. And I think bring it back to realities as I killed the metaphor is that um while people are unable to pay their own bills and struggling to put gas in their car and and are worried about how they're going to be able to take a vacation this summer, Mark Carney can talk all he wants about all the technicalities around uh you know like like an economist or economic professor um around the how we're just technically in a recession and don't worry it's going to be okay and and sort of Melany's point some of the stuff that he's introducing it might I mean I think it's going to a lot of environmental damage and do some other damage, but any of the even the good things that he's talking about, they're going to be long term and people aren't going to be feeling those immediately. And um so that's going to be the real problem. I think, you know, so far Mark Carney's been able to have a honeymoon and it's it's lasting for a long time, but I think in politics, you're walking up a hill with a backpack on and rocks keep getting added in that backpack and for a while you can walk along, but eventually it gets too heavy and you fall down and I think that there's just more rocks getting piled into Maran's backpack as we speak. Um, okay. Let's go with that analogy now because now we're hiking instead of flying. Uh, Laura, uh, and as the person who tried to get the answer yesterday out of Prime Minister Carney about the recession and, uh, he didn't quite want to answer it yesterday. Uh but how important is it to have an answer that Canadians can grasp on uh and and really understand and and and to the point that I think a lot of the other panelists have been making instead of saying don't worry it's going to get better making sure that people do feel like it is getting better.

[00:06:21]>> You know Mike I thought he would say something yesterday he turned to to walk towards me and then he kind of pointed towards the door and and sauntered off.

[00:06:27]But um I think the lesson is that communication is key. You cannot leave this gaping hole, this gaping black hole of information and expect Canadians to just accept it or or or to give up. And that's where I think that the Liberal government has handed an opportunity to the Conservatives this week to define this issue around the economy, around whether we're having a technical recession, a real recession, or if things are just looking really bad. I mean, the Liberals have had to answer to this and it wasn't until today that we heard uh from the prime minister after a few days of the opposition setting the narrative. So, when the prime minister came out today and explained a little bit about uh the trade talks, you know, the difference between Canada and Mexico, that's helpful. Uh when he talked about why the Canadian economy might might be uh looking weaker right now, but what what the government is doing about it, that's helpful. But you cannot just walk away from questions or leave a void of information and expect it to all go away. And I think that that's been a problem of this government. We haven't seen the prime minister answering questions uh from the opposition and from the media as much as as many would like. I think I know he was at a press conference today in Quebec, but you can't leave this gaping void and expect it to all go away. And so I think the government does need to do a better job as they did with Dominic Leblon today on the rooftop at least trying to communicate with Canadians and explain to them what is going on and and some of the most important issues facing this country.

[00:08:03]>> Yeah. Okay. Unfortunately, we got to leave it there, but kudos to our front bench panelists for getting it all in just in the nick of time. Dan Molton, Melanie Paredi, George Soul, and Laura Stone. That does it for your power play day in politics. I'm Mike Lucer. Thanks so much for sharing your time with