Canada wants closer ties with the European Union

Leanna Byrne (0:00)

The world's longest border is becoming a fault line.

SPEAKER_2 (0:03)

Now, I think it's laughable. The whole thing with Canada. Canada has been a terrible trade partner.

Louis Patenode (0:09)

You know, right now, things aren't exactly working out the best for neither country. So hopefully, there's a resolution in the near future.

Leanna Byrne (0:16)

It's World Business Report from the BBC World Service. I'm Leanna Byrne. We'll hear from a businessman whose shop literally straddles the US Canada border and find out what shifting trade tensions look like when you're caught right in the middle of them. Also, Nigeria produces plenty of oil, so why are drivers there being hit by soaring petrol prices? And is the office comeback gathering pace? We'll debate whether working from home really works, particularly for younger employees.

Now, since Donald Trump returned to the White House, the economic relationship between the United States and Canada has been frosty at best and often ill-tempered. This week, Canada's Prime Minister Mark Carney has been in Europe hoping to deepen Canada's ties with the European Union. Yesterday, Ursula von der Leyen, the president of the EU, told him that he was pushing at an open door.

Ursula von der Leyen (1:11)

This is not a partnership against anyone else, but for our common strength.

In short, we want to bring the relationship with Canada to the highest level possible. And, dear Mark, I said we must urgently re-imagine our partnerships. So I would like to work with you on opening the door for Canada to being the first associate member of the European Union.

Leanna Byrne (1:44)

On Thursday, Prime Minister Mark Carney stressed Canada's long relationship with Europe in a speech in the European Parliament.

Mark Carney (1:51)

We are not fair weather allies. We do not pursue zero-sum deals. Our commitment to the rule of law and our unyielding defence of human dignity, individual freedom and democracy share the same deep roots, the same unwavering dedication.

We hold common values for which we have always fought.

Leanna Byrne (2:21)

And later at a news conference, he told reporters Canada would decide for itself who it strikes deals with.

Mark Carney (2:27)

We are looking for partnerships that are complementary, that reinforce our sovereignty. And that's what is on offer here. And Canadians are united that nobody is going to tell us what language we speak. No one is going to dictate our culture or with whom we can strike agreements.

Leanna Byrne (2:45)

But the move towards a closer economic relationship between Canada and the EU has not gone down well in the White House. Here is President Donald Trump speaking on Thursday.

SPEAKER_2 (2:54)

Now, I think it's laughable. Look, the whole thing with Canada. Canada has been a terrible trade partner. And no, I don't see that. And if they do that, if I think it's an all-ahostle act, I will put very serious tariffs or stop trading with Europe.

Leanna Byrne (3:12)

So what's it been like for businesses operating close to the US-Canada border? No business represents that dilemma better than halfway house freight fording, halfway house is based in a building that literally straddles the frontier between the two countries, between the US state of Vermont and the Canadian province of Quebec. I've been speaking to Louis Patenote a little earlier. I asked him to describe it for me.

Louis Patenode (3:35)

Well, when you walk in our back door, which is our entrance right now for the business, you'd walk about two thirds of the way through and the lines on the floor, and you would cross from Canada into the US right there.

Leanna Byrne (3:46)

Wow.

And Louis, what does your business actually do? What are the kinds of things that turn up there every day?

Louis Patenode (3:52)

We provide a service for Canadian customers that cannot get parcels delivered to them from the US, and basically they use our American address to get products, and then they come pick them up and go do their declarations at customs when they leave our house. We're there because products not shipped or it's too expensive.

Leanna Byrne (4:09)

So that could be anything from tractor parts, transmissions.

Louis Patenode (4:13)

I've had tractor parts, I've had transmissions, tires, rims, cars, you name it. If it can be shipped, we can take it. My only exception is if it's too heavy, that we can't move it with the tractor, then they have to find a way to get something down to load it themselves or bring a winch on a trailer. But I'm good for 2,000 pounds, so I'm pretty much good to cover most of the stuff that comes in.

Leanna Byrne (4:36)