Ottawa sought to enlist TD Bank to talk up Canada in U.S. over NAFTA
Reaching out for advocacy, papers show
Early last year, the Canadian government was looking for friends on the trade file following the inauguration of Donald Trump and the prospect of a NAFTA renegotiation.
One of their stops, according to government briefing materials obtained by the Financial Post through an access to information request, was the Toronto-Dominion Bank.
Representatives of the bank, which bills itself as “America’s Most Convenient Bank” in the United States, met with Canadian foreign affairs minister Chrystia Freeland on Feb. 3, 2017, to “discuss Canada-United States trade relations,” the briefing materials show.
The “Top Line” message for the half-hour meeting in Toronto was: “Need to work together to engage with the new U.S. administration and promote Canada as an important economic partner that contributes to United States prosperity.”
Meanwhile, under “points to register,” the document says the Canadian government was reaching out to U.S. “business leaders and influencers” in order “to make the case that Canada is the most important export market for the United States’ companies.”
“Would welcome similar advocacy efforts by TD to its key contacts in the United States making the case about benefits to the United States stemming from its economic and commercial relationship with Canada,” the note adds.
Spokespeople for the government and TD did not say who from the bank was in attendance.
But the government confirmed that the meeting with TD took place, and said it would continue to engage with Canadian businesses, labour and members of the public during the NAFTA talks.
“Our approach to Canada — U.S. relations involves extensive engagement, not only with different levels of government in both Canada and the U.S., but also with labour and business leaders in both countries,” a spokesperson for Freeland said in an email. “Minister Freeland met with representatives from TD Bank last February, as she has done with representatives from many industries on many occasions and as she continues to do.”
A spokesperson for TD likewise confirmed the meeting.
“Strong trade relations between Canada and the United States are an important matter for both countries,” they added.
The big banks made for a logical target for Ottawa, as they have considerable exposure to the U.S. market — the briefing document noting that TD had “expanded aggressively in the United States.”
Trump had also “made it clear” the U.S. wanted a renegotiation of NAFTA, and Canada was “open to discussing improvements” to the trade deal, the briefing note says. Moreover, Global Affairs Canada noted in its 2016-17 “Departmental Results Report” that its mandate includes “engaging and influencing international players to advance Canada’s political and economic interests.”
A new NAFTA deal, however, has still not been struck. Meanwhile, the Trump administration’s recent move to impose tariffs on steel and aluminum from Canada, Mexico and the European Union has further soured trade relations between those countries and the current occupant of the White House.
The points in the briefing memo go on to describe how the U.S. “significantly benefits” from its NAFTA-assisted access to Canada. There is also a section with questions the minister could presumably pose to the TD people.
“What is your assessment of the impact of potential U.S. policy changes (including trade and fiscal policy) on your operations?” the note said. “Are you considering changes to your approach to the United States, given the new U.S. administration, e.g. whether through engagement with the new administration or other activities?”
Canadian bank CEOs continue to weigh in on NAFTA. For example, TD Bank president and CEO Bharat Masrani stressed in March that “there is a need to modernize this trade agreement, but not eliminate it.”