ADVOCACY IN ACTION

FIGHTING TO PRESERVE CANADA-US TRADE

How successful is the Canada-US trading relationship? Very successful; in fact:

• $1.3 trillion in annual two-way trade occurs between Canada and the U.S.

• 1.4 million American jobs are supported by exports to Canada

• Canada is the top export destination for 34 US states

• There are $3.6 billion in import and export flows every day between Canada and the US

• Most Canadian exports are inputs used by American businesses in their own production

• In 2022, US exports to Canada exceeded the combined American exports to Denmark, France, Germany, Italy, Spain and the UK

To learn more about the extensive trading relationship between Canada and the U.S., please visit the Canadian Chamber of Commerce’s Canada-US Trade Tracker: Canada-U.S. Trade Tracker - Business Data Lab (and share the Tracker in your networks and on social media).

What do tariffs mean for Mississauga?

Many local businesses have extensive connections to US businesses, making increased tariffs or restrictions on trade damaging to the local economy. The impact to Mississauga businesses will likely be worse than in other GTA municipalities. The connections to the US and elsewhere are one of the reasons why the City of Mississauga enjoys a sizable economic footprint, including being:

• the second largest local economy in Ontario 5% of Ontario’s population and 7% of the province’s economic output home to many headquarters of companies with a global reach

How do we preserve the Mississauga economy? What can we do?

The Mississauga Board of Trade (MBOT) has helped facilitate efforts by Mississauga’s businesses to engage with Americans who work in economic development and lead local chambers of commerce. Nearly every day, we discuss how tremendously successful the trading relationship is between Canada and the US. We are also highlighting how we can leverage that excellent relationship to preserve and grow the trade that already exists.

If you do business in the US through any means (i.e. clients, customers, vendors, suppliers, etc.), please contact Brett McDermott, Director of Government and Stakeholder Relations at bmcdermott@mbot.com. This will help make the case for Mississauga throughout the U.S.

What is the level of integration?

Recently, Canada’s Ambassador to the United Nations, Bob Rae, said on Fox News, “there is no such thing as an American car or a Canadian car.” He is right. The level of integration has created one of the most efficient supply chains between two countries in the world. Moreover, the majority of trade in goods between Canada and the US is for inputs – that is, parts that go into a final product. This speaks to the significant level of integration, efficiency and effectiveness in the Canada-US trade relationship.

MACKLEM ON TRADE CONFLICT: “SEVERE CONSEQUENCES”

“The economic consequences of a protracted trade conflict would be severe.” In his February, address to MBOT and the Oakville Chamber of Commerce, Bank of Canada Governor Tiff Macklem was clear. He argued that prolonged tariffs would result in no economic bounce-back.

By contrast, the recession during the COVID-19 pandemic was V-shaped: a rapid fall and a rapid return to prepandemic economic activity. The Bank forecasts that with higher tariffs, the growth path for the remainder of the 2020s will be 2.5% lower than would otherwise be the case. If the tariffs are in place throughout 2025, exports will decline 8.5%, which will result in reduced production and worker layoffs. Moreover, as growth is reduced, prices would increase even if demand declines.

While Governor Macklem painted a bleak picture, there is opportunity for maintaining the trading relationship. One avenue is through dialogue with American leaders in business. The Canadian Chamber of Commerce has done this by finding common ground with the US Chamber of Commerce; similarly, the Ontario Chamber of Commerce has found many points of agreement with the eight Great Lakes state chambers. And, locally, MBOT has found substantial agreement with local chambers and representatives in economic development. Through continued dialogue with Americans, Canadian business can limit the impact of tariffs and avoid Governor Macklem’s “severe consequences.”

MISSISSAUGA BUSINESSES FACE SIZEABLE TAX INCREASES

This year Mississauga businesses face a sizable property tax increase – in excess of the rate of inflation. MBOT is supportive of measured tax increases roughly in line with the consumer price index (CPI); however, we argued in submissions to Regional Council and City Council that the increases that were being considered (and were ultimately approved) were unaffordable to the average business.

The majority of the tax increase rests with the Region of Peel; in that light, we call on all elected officials in Peel to take into consideration the sizeable 2025 increase when their budgetary deliberations begin in the fall for budget 2026.