Ottawa-Canada needs to adopt a new approach to international relations to cope with the coercive diplomacy adopted by the Trump administration, says the Conference Board of Canada.

That approach would use the country’s soft power to create a more self-assured position on the global stage and a more resilient economy based that could leave Canada in a better than ever position, the Board said.

The approach would be based on diversifying our trading partners by building resource based and services exports and sourcing our imports with friendly countries as well as repurposing economic capacity made redundant by U.S. tariffs for domestic needs. At the same  time, Canada should identify and invest in strategic industries and boosting military spending.

“The US is directly using its economic and military power to force changes in the behaviour of others. Few countries face the implications of this change more acutely than Canada, but we are not alone in the world. The U.S.’s new foreign policy means Canada must expand our relationships with other countries and seek new ways to engage with the world,” the Board said.

“While geography dictates that our relationship with the U.S. will always be important, Canada must embrace its role as a global middle power to forge new opportunities.”

Canada has a lot to offer as a trading partner including being the world’s 10th largest economy, immense natural resource wealth, including the world’s third largest oil reserves, major agricultural capacity, large reserves of many minerals, vast forests and significant water resources. “In short, Canada is a country that most countries should be happy to be friends with: A highly educated, self-sufficient, democratic middle power with an enviable abundance of natural resources and access to three oceans.

“Understanding these strengths is critical in developing a new elbows up foreign policy. We need to be laser focused on addressing our own interests as we engage with the world.”

Canada should look for trading partners that are reliable and like-minded, good trading and investment partners, potential military allies and ready to trade to deal with domestic needs, the Board said.

“This will be a major shift, as the U.S. has historically been the major partner for all three of these needs. No country can reliably do that today, so instead we must build a web of new and expanded relationships. To do this, Canada will ultimately need to join, or lead, a group of middle powers centered in Europe and extending into Asia.”

Top of the list should be developed democracies, like the U.K., Europe, Japan and South Korea where security relationships are established and where economic opportunities exist. Next are emerging countries in Asia, Africa and Latin America where economic opportunities are clear but security co-operation is likely to be more limited. Third are China and India with strong trade opportunities but a challenging security and diplomatic environment.

The last “is the United States, with which we will always feel a gravitational pull.”

The full report is available at www.conferenceboard.ca

This news report prepared for National Newswatch