Beyond Courage Incorporated: Exploring the Canada-U.S. Relationship Post-Pandemic

By Duncan Sinclair, Chair, Deloitte Canada

This spring I had the privilege to speak with Scotty Greenwood, CEO of the Canadian American Business Council (CABC) on my podcast, Courage Incorporated, to discuss the past, present, and future of our special binational relationship. The following builds on the main themes of our conversation. ?

The Canada-U.S. relationship is historic and significant. Our two countries maintain the largest bilateral trading relationship in the world, cooperate closely on international defense and security, and tackle critical health and environmental priorities together. These joint commitments were re-confirmed at the G7 in Cornwall, England in June, when President Biden and Prime Minister Trudeau joined allies in pledging to “build back better” from the worst of COVID-19.

Yet, that connection has also recently faced challenges. Six months into the Biden Administration and 18 months into a global pandemic, our relationship remains strained by questions over trade barriers, the economic recovery, and border closures (which have only recently begun to relax). To improve our binational relationship during this critical period, we must deepen shared values that bring us closer together, rather than focusing on issues that drive us further apart.

Post-pandemic opportunities

Many of us will remember when the Canada-U.S. border first closed to non-essential international travel in March 2020 in response to COVID-19. How could we not? The closure — one of the many tough decisions that had to be made—was distressing for businesses, families, students, and tourists who rely on cross-border activities. It also forced our nations to reconsider our obligations to one another in times of crisis. This evolving dynamic calls to mind Robert Frost’s poem “Mending Walls,” where Frost writes, “good fences make good neighbours.” As we prepare to loosen border restrictions in the coming weeks and months, Canadians and Americans must strive towards a healthier binational relationship, one that facilitates cross-border activity and brings our people together while also preventing the spread of COVID-19.

To jumpstart the post-pandemic Canada-U.S. partnership, we must take greater advantage of our shared values and economic focus. In particular, a primary point of consideration for both countries should and can be on the creation of a low-carbon future to counter climate change. Now more than ever, there is optimism that our two nations’ recognition of the climate crisis will result in concrete, sustainable policy changes. President Biden came to office with an ambitious climate agenda, and at a virtual summit in April, Canadian and American administrations pledged to reduce their carbon emissions by 40-45% and 50-52%, respectively, by 2030. The private sector must play a critical role in the process. To be successful, initiatives like the Oil Sands Innovation Alliance, which united some of Canada’s largest greenhouse gas emitters in shared environmental goals, must become the norm across North American industries.

A focus on climate is just the first piece of the puzzle. Another critical, if not immediately obvious, step towards greater cooperation is to create a more united regime for regulatory cohesion. For instance, in testing for consumer products like cars and processed foods, whose supply chains overlap greatly between our two nations, we can eliminate redundancies by sharing test results and simplifying regulatory procedures. If products are cleared for consumption on one side of the border, they should also be viable on the other side. Our countries’ trade relationship presents additional opportunities for collaboration and cooperation on a range of trade issues.

Both Canada and the United States will benefit from increased cooperation, labour mobility, and trade, eschewing the protectionist policies that often harm our binational relationship. Yet despite our differences, there is an emerging consensus that North American trade unity is a vital response to a world economy increasingly dominated by China, Russia, and their own regional partners. As global supply chains shift in ever-unpredictable ways, Canadian and American exporters must unite to protect North American trade interests.

A more inclusive path forward

It is critical that our future is envisioned with an increasingly diverse set of stakeholders in mind. In Catalyst 2030: A Vision for a Thriving Canada, Deloitte research shows that during the COVID-19 pandemic, female workforce participation rates have dropped to figures not seen since the mid-1980s. A return to pre-pandemic levels of progress for women is by no means guaranteed, but increased representation at decision-making tables in boardrooms, universities, and government is an impactful place to start. When Prime Minister Trudeau announced a gender-balanced cabinet in 2015, his decision stood out as progressive, but today, it is increasingly accepted that more diversity among lead decision-makers can yield greater results. President Biden has followed this model and has appointed the most diverse cabinet in U.S. history.

Calls for increased racial representation must also be met on both sides of the border. Last year’s powerful movement for racial justice and social equality, as well as the recent horrific confirmations of Indigenous children buried in unmarked graves at residential schools across Canada, demonstrate how much we still need to learn, and how much we must do. Businesses must play their role in eliminating systemic racism through strategies such as the BlackNorth Initiative and the Government of Canada’s 50 - 30 Challenge, both of which Deloitte committed to last year. Pledges must translate to material actions for the business community to address racial injustice in the workplace.

In this vein, the time has never been more appropriate for Canada to wholeheartedly commit to the 94 recommendations outlined in the Truth and Reconciliation’s 2015 report, and for the U.S. to revisit its own history with Indigenous peoples. Recent political appointments demonstrate initial progress on this front. This year, Prime Minister Trudeau appointed Mary Simon as Governor-General, becoming the first Indigenous person to serve in that role. ?President Biden nominated Deb Haaland to lead the Department of the Interior, where she became the first Native American cabinet member. While these appointments are critical and long overdue, reconciliation requires meaningful acknowledgement of past harms and commitment and action to change behaviour.

The challenges that lie ahead do not have easy solutions, nor will those solutions be quick to implement. On complex issues ranging from climate to trade to racial justice, both Canada and the U.S. have work to do, and that will take unprecedented courage. It is through collaboration and cooperation that we will be best positioned to solve the complex issues our two countries face.