Ottawa considers appointing federal border czar following business community requests
Ottawa is weighing the appointment of a federal border czar to address U.S. security concerns, after requests from the business community for further tangible responses to Donald Trump’s complaints.
One name that has been raised as a possible candidate for the role is Wayne Eyre, the retired general who formerly served as Canada’s chief of the defence staff.
On Thursday, Canadian Imperial Bank of Commerce chief executive officer Victor Dodig joined the call for the federal government to appoint a border czar, and to offer financial support for businesses caught in the crosshairs of a trade war.
In an interview with The Globe and Mail, Mr. Dodig said Ottawa should act quickly to address the U.S. administration’s concerns over border security and the flow of fentanyl to help mitigate the scope of the brewing conflict.
“The government should give serious consideration to the appointment of a border czar from the Canadian side so that we can deal with this period of political fluidity that we’re going to see in Canada,” Mr. Dodig said.
“Appointing a border czar that stands above the politics and would be respected by our American allies and respected by any political leader in Canada – that’s what needs to be done because that will continue to show the seriousness with which we as Canadians are dealing with the issue that’s been raised by the Trump administration.”
Faced with the U.S. President’s threat, first made in November, to impose 25-per-cent tariffs on Canadian goods, Ottawa announced $1.3-billion over six years in new border-security measures. This does not appear to have dissuaded Mr. Trump, who is vowing tariffs beginning Saturday.
A federal source said Ottawa has been considering the czar position since Mr. Trump first vowed to impose steep tariffs on Canada over illegal migration and drug smuggling across the border with the U.S.
The Globe is not naming the source who was not authorized to discuss these matters publicly.
Alberta Premier Danielle Smith raised the proposal at the Wednesday meeting between Prime Minister Justin Trudeau and the premiers. She also suggested that Canada deepen collaboration with the U.S. on Arctic security and aerospace defence by establishing a joint NORAD military base in the Canadian North.
On Thursday, Saskatchewan Premier Scott Moe said in a statement that he backs Ms. Smith’s proposal for a border czar. “We take President Trump’s concerns seriously regarding the flow of fentanyl and illegal migrants and are supportive of enhanced border security measures,” he said. “I would further call for Canada to meet its 2-per-cent NATO commitment on defence spending.”
The federal source said the border czar and joint co-operation on northern bases with the Americans are both ideas floated by Canada’s business community in meetings with ministers and officials, as a way of dissuading Mr. Trump from his threatened tariffs. They said business leaders have also discussed these ideas with premiers. Another proposal was accelerating efforts to reach the NATO target on military spending.
The source said the border czar idea remains on the table, although they noted the federal cabinet already has a point person in charge of border security: the public safety minister.
In the interview, Mr. Dodig said Ottawa should also consider providing support for businesses affected by tariffs, including loan guarantees and payment deferral programs.
“They’ll look to support those industries that are most affected,” Mr. Dodig said. “A lot of this is going to depend on what policy decisions are made by the U.S. administration, which Canadian industries and segment sectors are most affected, and what kind of support can get put in place.”
As Canadian businesses try to anticipate the types of tariffs that could be implemented, Canada’s fifth-largest bank has been combing through its loan portfolios and reaching out to clients with U.S. operations, or those that may be affected by tariffs.
“It’s really important to understand how vulnerable certain clients are in the event of a trade war,” Mr. Dodig said. “If it should happen, we would go into overdrive in terms of communication and engagement.”
The Bank of Canada has said that a trade war with the U.S. could send the domestic economy into a recession and drive up inflation within the year.
During the pandemic, Canada’s banking regulator loosened capital reserve requirements for large banks by cutting their domestic stability buffer – which requires lenders to hold billions of dollars in excess cash to cushion the blow of an economic downturn. By lowering the buffer, the Office of the Superintendent of Financial Institutions freed up hundreds of billions of dollars in lending capacity for businesses and consumers.
This article was first reported by The Globe and Mail
