But B.C. won't pivot toward China, as other jurisdictions in Asia-Pacific have done in the face of the escalating trade war between China and United States
Premier David Eby announced a directive Thursday designed to decrease the B.C. government's dependence on American goods and services, but also signalled that the province won't pivot toward China. As the United States under President Donald Trump continues to fracture the global trading system, the directive requires ministries, health authorities and core Crown corporations to review contracts with American companies for goods and services and replace them with viable Canadian alternatives.
Government employees must also cancel non-essential travel to the United States. Just as British Columbians replace U.S.-made goods and services with alternatives, they expect government to do the same, Eby said. "It's a way for us to do what people are doing...right now supporting B.C., supporting Canadian, building trade markets with countries around the world other than than the United States, which is threatening our sovereignty, our economy, threatening the people of British Columbia," he said. "This is a look at your existing contracts," he said."It's a deeper dive into purchases that have already been made or existing service contracts with Americans. It is also broader. It goes into subscriptions. It goes into discretionary travel, industrial association, groups and really every aspect of money that might be on American services or goods." Eby acknowledged that government won't be able to replace all products and services currently coming from the United States, including things like the use of Internet services from Amazon and Microsoft. "These are very likely examples of services, where it is challenging to find Canadian companies to provide a substitute cloud service that would be at the requirements of our privacy acts as well as other obligations." He also added that government would also weigh the costs of replacing American products and services with Canadians alternatives if they are available. "We are not going to incur dramatic additional costs," he said."So we are expecting good judgment from Crown corporations and core government looking at this, but wherever viable, they should be substituting for American goods and services." He specifically pointed government's decision to cancel a contract with Starlink — a company owned by Trump advisor Elon Musk — to provide home internet services in rural B.C. Government, however, kept a contract with Starlink to provide Internet service along highways for emergency services. When asked for a definition of"viable" alternatives, Eby said he would"love to be as prescriptive as possible" but the"scale and scope" of different government contract"makes that almost impossible." While it might be okay to pay 10 per cent more to replace a cancelled American subscription with a Canadian subscription, potentially paying 10 per cent on a contract worth $1 billion represents a different category, he said. When asked why buying Canadian products has not been the default position of government, Eby pointed to Canada's signature on the current agreement governing free trade in North America. "Obviously, with having ripped up...the agreement that he negotiated and signed, calling it a rip-off and a scam, then obviously it creates the opportunity for us to prefer B.C. and Canadian products without fear of violating the agreement that he has already trampled under his feet." Analysts have said Trump's tariffs could make the United States increasingly isolated as a trading partner as other countries including historical U.S. allies like Japan, South Korea and the European Union are deepening ties with China, which is in a bitter, escalating trade war with the United States. Japan and South Korea, regional rivals toward each other and China, have recently talked about reviving stalled free trade negotiations. European and Chinese officials have also discussed mutual economic interests. China has also long pursued a strategy of tying countries in Asia, Latin America and Africa to its economy, efforts that will likely intensify as American credibility shrinks and the U.S.-Chinese trade war continues. "I have encouraged the Prime Minister to build a coalition of countries that value democracy, that value human rights, value environmental protection and that value free trade and work together with them." "We got Australia, New Zealand, , the EU, the Philippines, I could go on, India," he said."There are many countries that we need to reaching out right now, to have conversations, to expand our trade to respond to the U.S. in a coordinated way." B.C. Housing Minister Ravi Kahlon, who is coordinating B.C.'s tariff responses, said B.C. is strengthening its relationship with countries in Europe and in Asia. He added that B.C. benefited from its access to both the United States and China. "That was a strength for us, as far as trading goes," he said."But now, it has become a real challenge when these two superpowers are going head to head. So I think there is going to be an opportunity for us to build relationships with countries and jurisdictions that have similar values, that similar belief in fair trading agreements and that is what we are going to focus on."
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