MNI INTERVIEW: Canada FinMin Sees Progress As US Hosts G20

Canada's Finance Minister told MNI he's optimistic about progress on issues like resource development and China's overcapacity as the U.S. leads the G20 this year, at a time of shifting threats made by President Donald Trump on security and trade. 

Francois-Philippe Champagne said in an interview at Parliament Tuesday the change in the G7 presidency this year from Canada to France will provide some helpful continuity. 

“It’s going to be an opportunity to really advance the agenda that we have set for ourselves looking around critical minerals, trade imbalances, bringing the unity that countries and people expect from us at the G7,” Champagne said. 

There is still good personal communication between Canadian and U.S. leaders, he said, even after days of headlines about disparaging comments from Trump and Treasury Secretary Scott Bessent. Lines of communications between the two finance chiefs are still open including on a G7 call this morning, Champagne said. 

“We interact very regularly, I think last year we had about 10 to 11 meetings at the G7. I exchange text messages with Secretary Bessent quite regularly.”

Prime Minister Mark Carney also had a recent call with Trump, days after the president threatened 100% tariffs if Canada advanced a free trade deal with China. Champagne said the prime minister clarified Canada is merely seeking the same kind of market access to China other major economies are pushing for. 

EYES WIDE OPEN

“Everyone has been looking for ways to find a strategic path forward with China, with eyes wide open,” he said. “The Prime Minister and the President had a chance yesterday to talk about a number of things… making sure that our U.S. colleagues understand that our engagement with China is no different than our other G7 partners.”

Prime Minister Mark Carney has said his recent trip to meet President Xi Jinping mostly moved trade terms on items like canola and seafood back to where they were a few years ago, and gave China an electric vehicle quota for perhaps 2% of Canada's market. (See: MNI INTERVIEW: Canada Needs Broad Response To US Oil Threat)

The U.S. President returned to calling Canada's leader "Governor" days after Carney's Davos speech where the prime minister said "middle powers" must align to avoid being exploited by major powers and referenced tensions around Greenland. Carney has also set a goal of lowering Canada's share of exports to the U.S. to 50% from 75%. (See: MNI INTERVIEW:Canada Must Bulk Up, Aid US To Keep Arctic Stake)

“You cannot be diversifying your economy without talking to the second-largest economy in the world, and your second-largest trading partner. So I think this is well understood by our colleagues,” Champagne said. “What the Prime Minister has been saying in many ways is that the world has changed, and our closest partner commercially, the United States of America has decided to have a different trade policy."

He added that “Canada was probably one of the first countries to really understand the direction of the trade policy in the United States, and therefore decided to do what must be done. It’s well understood what Canada is doing, and I think it’s a good thing, we’re less reliant and we’re more resilient.”