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B.C. makes trade diversification a priority even as Trump delays tariff threat

'We're going to make sure that we're never again in the position ... of being so exposed to the whims of one person in the White House,' said B.C. Premier David Eby

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B.C. has put a hold on plans to stop selling liquor from U.S. states that voted for Donald Trump, after the U.S. president announced his planned tariff of 25 per cent on most Canadian goods has been put on pause for 30 days.

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Talks on Monday between Trump and Prime Minister Justin Trudeau resulted in an agreement on a $1.3 billion border-security plan paid for by Ottawa.

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“We will pause our response, recognizing that there is an opportunity here to potentially avoid these tariffs, hoping in good faith that that is the path that this ultimately takes,” said Premier David Eby.

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“That doesn’t mean that we will abandon our preparations for tariff measures. If a tweet tomorrow puts the tariffs back on, we need to be prepared, we will be prepared, and we will continue our work to respond and, hopefully, we don’t need to.”

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He also said he doesn’t expect there to be a “rush” to put U.S. liquor back on the shelves and that he believes Trump has made it clear his ultimate goal is to annex Canada.

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Before the announcement of the pause, B.C. politicians at the provincial and municipal level were exploring ways to reduce reliance on the United States.

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Speaking from the PKM Canada port terminal in North Vancouver on Monday before the Trump pause, Eby said his government is already taking steps to diversify its export industries and procurement process for major projects away from its southern neighbours.

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Eby said that even with the tariff delay, B.C. can expect four years of uncertainty because of the positioning of the new administration in the White House.

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“We’re going to make sure that we’re never again in the position, certainly British Columbia is going to do this, of being so exposed to the whims of one person in the White House,” Eby told reporters.

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“So many Americans are friends and family and we have such good relationships with them, but we’re not going to take that relationship for granted. We’re going to make sure that we have other deep relationships, trading relationships, so that our families are safe.”

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As an example, the premier pointed to a ship that he said is loaded with copper concentrate that is on its way to Asia instead of the U.S., to be turned into a number of goods that will then be shipped all around the world.

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He also pointed to the reopening of trade offices in Taiwan, Vietnam and the Philippines over the past 18 months as ways the province is looking to expand beyond the United States, which remains its largest trading partner and receives 54 per cent of B.C.’s exports.

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Conservative Leader John Rustad agreed with Eby that diversification is needed but also wants to see the province do more when it comes to developing trading relationships with other provinces and territories.

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In a 10-point plan released Sunday, Rustad said he wants the NDP to negotiate a Canada-wide free-trade agreement and to take immediate actions to help resource industries get projects off the ground.

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This includes getting Phase 2 of the Canada LNG project in Kitimat underway, granting a 10-year extension to permitted natural gas pipeline projects and working with the mining sector to get 17 proposed projects approved.

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The Conservative leader also wants Eby to immediately recall the legislature to pass a fiscal emergency bill that would designate money for port security, suspend most requirements of the Environment Assessment Act and those necessary for development permits.

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A three-month review aimed at eliminating what he called unnecessary spending would be another piece of the legislation.

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“As much as I dislike what Trump is doing, there is one possible silver lining with this, which is perhaps we can actually start thinking as Canadians and building our country,” said Rustad.

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“We have all the resources. We have great people, we have all the potential to have one of the strongest economies, one of the highest standards of living anywhere in the world. We are just hopelessly managed at all levels, and it’s time to bring that to an end.”

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Delta city councillor Dylan Kruger also said the Tilbury LNG expansion project and the Massey Tunnel replacement should be priorities as a way to both create local jobs and expedite the shipment of goods to Asia.

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His other request, that B.C. give priority to Canadian companies in the procurement process for major projects, is something Eby has already said his government is working on.

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Kruger, however, said the municipality is barred from discriminating against companies based on where they are located and needs the province to pass a law allowing them to do so.

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“The province of B.C., the province of Ontario, many senior levels of government, have come forward with announcements that they’ll be looking to ban American companies from bidding on their procurements for multi-billion dollars worth of contracts,” he said.

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“We need the provincial government to come in quickly on legislation to allow cities to mirror the work that’s already been done by the province of B.C. and the province of Ontario.”

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Other local officials have also made asks of the province, with Surrey Mayor Brenda Locke calling for a suspension of the gas tax and the provincial sales tax on all B.C. goods.

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Eby responded to the suggestions of Locke and other municipal officials by saying his government is always looking for ideas to blunt the impacts of tariffs.

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He, however, rejected Rustad’s idea to get rid of many of the province’s marquee policies on reducing emissions and said it is unfortunate Trump’s tariff threats are undermining work being done with U.S. states to tackle climate change.

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“I think of Washington state, Oregon and California and so the unfortunate piece about this is that through these threats, work that we should be doing together on growing our North American economy and reducing our emissions is compromised,” said Eby.

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“We want to make sure we’re fighting climate change, but we’re for damn sure going to make sure that our sovereignty is protected in this country and that our families are protected, and they can pay the rent and they can buy their groceries, and that is our No. 1 priority, and it always will be.”

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TALK TO US ABOUT TARIFFS: Has the news of tariffs changed your buying habits or travel plans? Has it impacted your workplace or business? We want to hear your thoughts on how the U.S. tariffs has impacted your daily life. Sound off in the comments below or email us at vantips@postmedia.com if you’d like to speak with a reporter for a future story.

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