In this interview with BNN, Ed Devlin discussed possible outcomes of the G7 summit and the potential impact on the Canadian economy.
Ed Devlin opened by stating that if trade talks are advanced over the course of the summit, we won’t know about it right away. In his opinion, it is better to have the disagreements discussed directly behind closed doors than aired publicly. On the subject of international trade, Ed said that tariffs and trade tensions have their biggest economic effects because of their impact on business and consumer confidence, especially in Canada due to its trade dependence. He elaborated that while the costs of the tariffs are not that significant, the potential escalation of trade restrictions was a problem – as small economies like Canada and Mexico are most likely to get hurt by these trade tensions. Ed speculated that trade conflicts could be short term pain for long term gain, but that would imply there is a strategy involved. Typically the US and its allies have tried to have a unified trade front when dealing with China, but the recent US tariffs being imposed do not follow that plan. Ed thought that trade deficits with China are not really very important; what really matters are issues such as intellectual property rights.