The report outlines Canada’s path to show its importance to the United States.

WASHINGTON — While Canada cannot escape the pull of an increasingly unstable United States, a new report charts a path forward that aims to ensure that Canada’s interests become more important to our closest neighbour.

“The world does need more Canada. The United States does. Our other allies do,” said the report by the Public Policy Forum, a nonprofit that brings together experts to advise on important policy issues.

“But it’s up to us to make it happen.”

The report, to be released on Wednesday, suggests Canada should deepen cooperation with the United States in key sectors now.

Canadian officials and business groups have been reaching out to Democrats and Republicans across the United States for years to engage with them on their bilateral interests, ensuring Canada is prepared for whatever the outcome of the November election.

The top topic for Canadians shaking hands with their American counterparts is the upcoming 2026 review of the U.S.-Mexico-Canada Agreement. Both presidential candidates are peddling protectionist policies that could create uncertainty for Canadian trade.

While the United States is Canada’s largest trading partner, the report notes that Canada is a “shrinking economy” by comparison, with the economies of states like California, Texas and New York being the same size or larger.

Others warn that the relationship between the two countries has shifted from strategic to transactional as Canada has become less critical compared to other places in the world.

“We can’t drift,” said Edward Greenspon, one of the report’s co-authors. “Our allies need us, and we need to fight for relevance in a world that is under much greater pressure.”

The Public Policy Forum and the Munk School of Global Affairs at the University of Toronto partnered last year to examine how Canada can manage these risks.

The report concludes that the situation is not dire. If Ottawa can align its national interests with those of its close partners, especially the U.S., there are opportunities that will leverage Canada’s strengths.

“We must put our cause on the agenda as soon as possible, regardless of who wins the presidential election or who controls Congress,” the report noted.

It suggested that rather than putting “all its eggs” in the basket of a trilateral trade deal, Canada should focus on four sectors with the greatest impact: Arctic security, critical minerals, energy and environment, and technologies such as artificial intelligence and quantum computing.

The report suggests that these sectors should be “continentalized,” which requires production and investment on both sides of the international border. Greenspin said he would “now drive sticks into the ground” in areas that really matter at home and abroad.

Arctic security is becoming increasingly important to Americans resisting Russian and Chinese actions in the north.

The report said increasing investment in the Arctic would show Washington that Canada does not shirk its responsibilities and would bring the country closer to meeting NATO’s goal of spending two per cent of gross domestic product on defence.

After days of pressure from U.S. politicians at this year’s NATO leaders’ summit in Washington, Prime Minister Justin Trudeau said Canada expects to meet the goal for the first time in 2032.

The Public Policy report also points to Canada’s vast reserves of key minerals that are needed for the green and digital economy. The U.S. is a willing market, and other allies are looking to move away from China as a source of materials.

“While the geopolitics of the 20th century was characterized by struggles over access to oil, the 21st century may be defined by struggles over key minerals,” the report noted.

Canada could also make a greater contribution to the U.S. electricity grid and environmental goals, whether through small modular nuclear reactors, uranium, natural gas, or carbon capture expertise.

According to a study by Princeton University, the United States will need to increase electricity transmission by about 60 percent by 2030, and that increase may need to triple by 2050.

The report said Canada and the United States should work together to set standards for next-generation technologies and strike deals to encourage companies to build supply chains and jointly purchase across borders.

Greenspon said the first thing Ottawa needs to do is make clear to Canadians that the current global situation creates challenges but also opportunities.

“There are always bumps in the road, but we need to pave as much as we can, and we have plenty of materials to do that,” he said. “We have a lot of advantages.”

This report by The Canadian Press was first published September 17, 2024.

Kelly Geraldine Malone, The Canadian Press