Biden’s visit to Canada

In anticipation of the visit, there were expectations that the American president would publicly pressure Canada to lead a mission in Haiti, ramp up defense spending to meet the NATO 2% target, and shore up air defence support with NORAD. Many of these topics appear to have been ironed out behind closed doors, with modest Canadian investments in Haitian policing and a re-announcement of Canada’s upcoming defence spending plans around NORAD and F-35 readiness. In public, President Biden had nothing but praise for Canada’s partnership on these issues, and made particular note of Canadian contributions to the war in Ukraine.

Canada’s top political priority for the visit was to close an unofficial border crossing at Roxham Road, where tens of thousands of asylum seekers have crossed into Canada every year from the US – creating a major political headache for Prime Minister Trudeau. To the surprise of many analysts, the Canadian government secured a commitment to extend the Safe Third Country Agreement across the entire border, effectively cutting off this unofficial route into Canada. While the deal – for now – resolves a serious political pain point for the Trudeau government, it was met with strong criticism from human rights groups because it risks pushing migrants to cross in more remote and dangerous areas.

While these issues generated the majority of headlines associated with the visit, perhaps the most significant third player in the visit was the Inflation Reduction Act (IRA). Biden’s landmark climate and industrial policy was at the heart of his speech to Parliament, where his emphasis was on near-shoring supply chains, rebuilding industrial capacity within North America, and creating good union jobs on both sides of the border. Given the IRA’s expansion to include Canada, concerns about Buy American were not at the forefront of discussions this visit.

Canada’s response to the IRA, expected in this week’s budget, is likely to contain a mix of tax credits to attract green investment and moves to strengthen North American supply chains – in particular in the areas of carbon capture and storage and the critical mineral sector.

So far, the Canadian government hasn’t seized on some of the more transformational elements of the IRA, like measures to create more union jobs, tackle rising inequality and address the affordability issues facing working people. But Biden’s visit was a reminder to the Trudeau government that climate legislation can pursue broader social and economic policy goals, and that such a dual track has both practical and political benefits. , the Canadian government hasn’t seized on some of the more transformational elements of the IRA, like measures to create more union jobs, tackle rising inequality and address the affordability issues facing working people. But Biden’s visit was a reminder to the Trudeau government that climate legislation can pursue broader social and economic policy goals, and that such a dual track has both practical and political benefits.