Good afternoon. It's a great pleasure to be here in Saskatoon, and I want to thank the Saskatchewan Trade and Export Partnership and the Greater Saskatoon Chamber of Commerce for the invitation.
Canada is a trading nation.
We rely on exports for around a third of our income, and we use that income to buy the things we need from abroad. The share of exports in Saskatchewan's gross domestic product (GDP) is even higher, roughly 45%-that's the highest in the country. Saskatchewan provides commodities to the world-wheat, canola, potash, oil and gas, uranium and more. And it imports a range of goods, particularly motor vehicles and machinery and equipment, mostly from the United States.
Unfortunately, trade is under attack.
Globally, trade friction has been increasing for the past dozen years, and now the United States has swerved sharply to protectionism. The large increase in US tariffs is weakening global demand, disrupting supply chains, raising prices and putting the Canadian and global economies on permanently lower paths.
These shifts in trade also have implications for international capital flows. Together with unsustainable US fiscal deficits, persistent trade imbalances have the potential to increase financial stability risks globally.
Saskatchewan, like most of Canada, is caught in the crossfire.
