Economic coercion offers no long-term solutions: Foreign affairs expert Waiel Awwad over US-Canada trade talks stalemate

Speaking to ANI on rising economic tensions, including the collapse of trade negotiations between the US and Canada, Awwad called for global governance, including the World Trade Organisation (WTO), to bring balance in international business.

"I believe the United States should come to the table and reach to a sort of compromise to discuss not only with the allies and partner but also for the rest of the world... There has to be some kind of a measure. There has to be some global governance that can rule and this World Trade Organization has to play a major role in bringing this balance bilateral trade between countries, not to go for a sort of unilateral actions," he stated.

Awwad further stated that tariffs are merely "temporary measures" that ultimately undermine long-term stability unless governed by established global standards.

"I believe the president of the United States wanted to balance the trade relation between any countries. That is a that is a demand every country has whenever you have a bilateral relation. But to use economic coercions against countries and using tariff, these are temporary measures, does not give you a prolonged solution," the expert stated.

He also cautioned about the broader risks to developing countries, pointing out that heavy pressure on a major US partner creates broad uncertainty across global markets.

"Imagine what will happen to India if country like Canada has been subjected to all these kind of atrocities and pressures by the American president. So I believe there has to be some kind of a measure," he said.

His remarks came after trade negotiations between Washington and Ottawa broke down late Friday night, with the United States imposing a 50 per cent tariff on nearly USD 28 billion worth of Canadian imports from 12:01 am ET.

Responding to the development, Canadian Prime Minister Mark Carney on Saturday said Canada will match the United States' new tariffs dollar-for-dollar to protect Canadian workers, farmers, families and businesses.

In a post shared on X, Carney said he had instructed Canadian negotiators to return to Ottawa after over a year of discussions with Washington, adding that Canada could not accept the offer made by the United States.

"Late last evening I instructed our negotiators to return to Ottawa. We cannot accept what the U.S. has offered, and we will not give what they have asked," he said, adding, "Canada will match the U.S.' new tariffs dollar for dollar in order to protect Canadian workers, farmers, families, and businesses. We take this step confident that it is in the best interests of Canada."

Carney described Washington's last-minute demands as "unfair and uneconomic", saying they raised questions over the reliability of any potential agreement.

He said Canada had made significant progress in recent weeks during the negotiations, but the outcome did not meet Ottawa's objectives.

Carney said the Canadian government would introduce additional measures to support workers and businesses, building on nearly USD 25 billion in assistance provided over the past 18 months.

The Canadian Prime Minister added that Ottawa would announce details of its retaliatory tariff measures in the coming days. The new measures will come into force on the Tuesday after Labour Day.

Subsequently, US President Donald Trump brought back his jibe of referring to Canada as an American state.

Trump made the remarks in a post on Truth Social, making them his first remarks since Carney asked his negotiating team to return as the talks hit a dead end between Canada and the United States.

Trump also argued that Canada has charged massive tariffs on American farmers.

He said, "Canada wants the benefits of being a State, without being one!!! They have also charged our great farmers, for many years, massive amounts of Tariffs. No more!!! President DJT." (ANI)