We're gonna need a bigger donut

A daily look inside Canadian politics and power.
Jan 19, 2024 View in browser
 
Ottawa Playbook

By Kyle Duggan

In today's edition:

→ Playbook looks at some the prep work Canada will have to do ahead of the 2024 U.S. election and considers how that changes in the scenario of a DONALD TRUMP presidency.

→ Who’s up and who’s down this week?

DRIVING THE DAY

Canada's Prime Minister Justin Trudeau holds a joint press conference with U.S.

Prime Minister Justin Trudeau will meet with his Cabinet next week ahead of the return of the House. | Andrej Ivanov/AFP via Getty Images

EYES ON THE BALL — Housing and affordability will be main topics at the Cabinet retreat that kicks off Jan. 21, but among the names expected to haunt the hallways: DONALD TRUMP.

Prime Minister JUSTIN TRUDEAU made it clear this week he’s ready for the prospect that Trump could soon be running the White House for a second time following his Iowa momentum.

And Trudeau made it clear where he stands on a scenario of a Trump round 2, after the first frantic time in office, when the two famously butted heads.

— Are we ready?: “No,” said THOMAS JUNEAU, associate professor of public and international affairs at University of Ottawa. “Politically, I understand why he would say that, but Canada is not ready. Nobody can be ready because it would be so unpredictable.”

— Clock is ticking: Just 291 days until the Nov. 5 election. And a lot of what Juneau says Ottawa could do that would potentially Trump-proof Canada from unexpected shocks to the system, like the last time around, are structural and would take years.

Canada has neglected to “diversify our trade and security relationships and invest far more in security and defense capabilities.”

— Strategic weak points: Trade market access and the USMCA coming up for renewal in July 2026. Canada’s lagging defense spending as a NATO country and the prospect of a Trump White House launching a tariff battle over that fact. Our heavy reliance on U.S. defense and security contributions to NATO, NORAD, and Five Eyes intelligence sharing and more.

Retired Lt. Gen. ANDREW LESLIE, who was CHRYSTIA FREELAND’s parl. sec during the Trump years and frequently traveled south of the border to meet with U.S. governors, said now’s the time for the Liberals to get ready for what could be a period of “significant turmoil and sort of emotion-driven and political decisions originating in Washington.”

“The current Liberal government is very good at making announcements, but really bad strategic planning,” he tells Playbook. “This is a strategic issue which involves planning, so I don't think much has been done yet.”

Behind-the-scenes plays: Former diplomat COLIN ROBERTSON says Canada is likely to be better prepared this time around since last time Trump’s first electoral win came as “such a shock.”

 But a lot of the key diplomatic prep work ahead of a presidential election ends up being nearly invisible.

“It's basically getting to know who the potential players are going to be, and it may not be a player that goes in right away but a player who enters in a couple of years. It's a contact sport. It's retail politics. It's retail diplomacy.”

When Barack Obama ran against Hillary Clinton in 2008, the leak of a Canadian diplomatic memo caused embarrassment in Ottawa — the kind of thing that can cut off access to a candidate’s campaign team.

“Our embassy, KIRSTEN HILLMAN, and our various consuls general will all be already well engaged, the war room is already probably in place and feeding back information,” Robertson said.

“The embassy is already actively reaching out to think tanks like the American Enterprise Institute, the Heritage Foundation,” which are preparing “the mandate for change” and can end up serving as kind of a “kindergarten for the new administration.”

LOUISE BLAIS, a former consul general in Atlanta in 2016, says Canada appears not yet ready to face a Trump 2.0, but there's still time on the diplomatic front.

“There is an effort being made now,” she tells Playbook. “The ambassador is traveling outside of Washington, D.C., a lot more than she did earlier on in her tenure.” Hillman talked to Playbook about that back in December.

Former diplomat FRANK MCKENNA tells Playbook he’s not worried about prep for post-November, regardless of who ends up in office.

“The people I talk to in Ottawa are well aware of what needs to be done,” he said. “They're engaged in preparation, certainly, the beginning of preparation for NAFTA negotiations is taking place and then there are a lot of cross-border discussions taking place now between various parties in the U.S. and Canada. I would say that people are seized with it.”

President Joe Biden walks to Marine One on the South Lawn.

President Joe Biden in Washington earlier this month. Says one observer of the 2024 race: "The government of Canada should be very careful not to assume a particular outcome." | Drew Angerer/Getty Images

Sage words of advice for 2024:

—> Boost travel budgets: “We changed the point system a few years ago for members of Parliament so their [travel budget] would allow them to go to Washington,” Robertson said. “We should extend that to allow them to travel into the states themselves to go see their counterparts; there's 13 states we have borders with, all politics is truly local and we have an advantage with Americans.”

—> Tread lightly: The government should “leave the punditry to the pundits” to avoid antagonizing a particular political party, Blais said.

That’s easier said than done. In 2022, the Liberals made it clear they wouldn’t say boo about Trump’s return to the political fold, but that strategy has already shifted.

“We also have to be careful about causing or creating irritants this year, things that could become a lightning rod and get picked up in the press or as a campaign issue,” Blais added.

“Last time around NAFTA was brought up by the president as something that he wanted to tear up, but I think there are things going on right now, like the digital tax, that we have to be mindful about how we manage at this juncture.”

—> We’re gonna need a bigger donut: What worked well for Canada last time was the “donut strategy,” Juneau says, which was building relations with individuals around the president.

“The difference is that this time, Trump would hit the ground running and from day one, there would be no adult in the room around him … so that donut strategy would have to be on an even bigger scale than what we've done in the past.”

—> Write it down: Ottawa should “take defense of Canada and our role in the international arena more seriously,” Leslie said. “Start seriously thinking through what the implications are of Trump return to the White House in terms of NAFTA and collect some of the memories that exist of those who went through it before too much more time passes.”

—> Maybe don’t focus on Trump: “It's one thing to prepare,” McKenna said. “It's another to assume an outcome, and the government of Canada should be very careful not to assume a particular outcome. The preparation that takes place should be generic.”

Where the leaders are

Prime Minister Justin Trudeau, Nunavut Premier P.J. Akeeagok and Nunavut Tunngavik Inc. President Aluki Kotierk, sign the Nunavut devolution agreement in Iqaluit on Thursday.

Prime Minister Justin Trudeau, Nunavut Premier P.J. Akeeagok and Nunavut Tunngavik Inc. President Aluki Kotierk. sign the Nunavut devolution agreement in Iqaluit on Thursday. | Dustin Patar/The Canadian Press

— Prime Minister JUSTIN TRUDEAU is in Iqaluit meeting with Nunavut Premier P.J. AKEEAGOK at 9 a.m. According to his itinerary, the two will “participate in on-the-land activities” at 10:20 a.m. with the Nunavut Tunngavik Incorporated President ALUKI KOTIERK. Read more on the events in Nunatsiaq News.

— NDP Leader JAGMEET SINGH is in Burnaby, B.C., and scheduled to meet virtually with the United Steelworkers Local 665 at 1 p.m. to “help fight for the 400 mill workers who lost their jobs due to the AV Terrace Bay pulp mill being shut down.”

WHO'S UP, WHO'S DOWN

A huge advertising banner with a slogan about AI is fixed at a building at the Davos Promenade, alongside the World Economic Forum in Davos.

The scene in Davos at the World Economic Forum. | Markus Schreiber/AP

UP: The AI hype at Davos.

DOWN: Toronto tobogganers.

MEDIA ROOM

PIERRE POILIEVRE and two Quebec mayors — VALERIE PLANTE and BRUNO MARCHAND — got into an entertaining scrap on social media over housing Thursday. CBC’s ANTONI NERESTANT has the blow-by-blow.

— Bellingcat founder ELIOT HIGGINS is on a fresh episode of the Uncommons pod.

— From the Star's ALEX BALLINGALL: Here's where some Trudeau Liberals say they've gone wrong.

Our colleagues in Europe report that the senior roles at the European Commission, Council, Parliament and foreign service could all be held by women after June’s EU election.

— What is Disease X and how will pandemic preparations help the world? Al Jazeera English explains.

In the latest episode of POLITICO’s Power Play, U.K. Foreign Secretary DAVID CAMERON sits down with ANNE MCELVOY at the World Economic Forum to discuss the Houthi attacks in the Red Sea, the Israel-Hamas war, as well as Russia’s ongoing war in Ukraine — which he says is his “absolute number one priority.”

JEN GERSON writes in The Line that immigration policy, “more than any other issue, will pose the real and most fundamental moral test” of PIERRE POILIEVRE’s leadership.

PROZONE


If you’re a subscriber, don’t miss our latest policy newsletter from ZI-ANN LUM: The largest land transfer in Canadian history

In other news for Pro subscribers:

U.S. Senate panel advances bipartisan bill inching toward carbon tariffs.

JOE BIDEN's international economics adviser to step down.

Trump vows to block any Fed effort to launch digital currency.

European Commission set to push for 90 percent emissions cut by 2040.

WTO members await U.S. proposal on national security claims.

Playbookers


Birthdays: HBD to former premier and ambassador FRANK MCKENNA, born on this day in 1948. Former federal and provincial politician JOHN REYNOLDS also celebrates. PRINCESS MARGRIET OF THE NETHERLANDS was born on this day at the Ottawa Civic Hospital.

Celebrating Saturday: HBD to ANDREA BAILLIE, editor-in-chief of The Canadian Press.

Celebrating Sunday: ROBERT GHIZ, president and CEO of the Canadian Wireless Telecommunications Association (50!), former Senator NICOLE EATON and McMillan Vantage’s STEVIE O’BRIEN.

Send birthdays to ottawaplaybook@politico.com .

Spotted: The Library of Parliament’s help wanted ad.

NATE ERSKINE-SMITH substacking that he plans to “stay closer to home after this current parliamentary session” and that it will be “time for someone else to step up and serve Beaches-East York after the next federal election.”

Conservative campaign specialist STEVE OUTHOUSE, running the numbers on out-of-province political donations in New Brunswick.

Bluesky Strategy Group celebrating colleague ANGELO BAKOULAS as he received his Canadian citizenship.

ANDREW MACDOUGALL with lines for the PMO and Trudeau: “How about: ‘We were fortunate enough to stay with friends over the holidays and we realise how fortunate we are to have such friends. All rules etc.’”

Ambassador of Ukraine to Canada YULIA KOVALIV with MARGARET ATWOOD who was named a commander in the French Order of Arts and Letters on Wednesday.

Pierre Poilievre scheduled to host a “Bring it Home Rally” in Coquitlam, B.C., on Sunday evening, hosted by Clark Freightways.

Movers and shakers: KEREM KARABEYOĞLU joined Crestview Strategy as a consultant.

Farewells: PETER O’MALLEY, former staff to ED BROADBENT, passed away last week. His obit says he “left an impression on everyone he met, and is remembered fondly for his wit and political savvy, as well as his kind heart.”

Media mentions: BBC's chief international correspondent and Canadian LYSE DOUCET was honored by Keele University with an honorary Doctor of Letters.

TALK OF THE TOWN


SIGN UP TODAY — The First Annual POLITICO Canada Trivia Cup is too a thing.

→ On Jan. 24 the first of five qualifying rounds of competition will take place starring a sold-out room of lobbyists.

→ Next up on Feb. 5 will be a battle of brains among the people who staff ministers’ offices. There are still some open tables in the room, so hit us up to reserve your spot.

ON THE HILL


The House of Commons is back Jan. 29; the Senate returns Feb. 6.

Find House committees here.

Keep track of Senate committees here.

11 a.m. The Commons health committee meets to study Ottawa’s contract with Medicago over designing a Covid vaccine.

We're tracking every major political event of 2024 on a mega-calendar. Send us events and download the calendar yourself for Google and other clients .

TRIVIA


Thursday’s answer: “We barely got to this date,” then-Nunavut Premier JOE SAVIKATAAQ said on Aug. 15, 2019, after the signing in principle of a devolution agreement.

Props to WILL BULMER, GEORGE SCHOENHOFER, MARCEL MARCOTTE, MATT DELISLE, ROBERT MCDOUGALL, JIM CAMPBELL and AMY SCANLON BOUGHNER.

Today’s question: Who played KEN TAYLOR in a 1981 movie-of-the-week about the escape of six Americans from Iran in January 1980?

Answers to ottawaplaybook@politico.com .

Want to grab the attention of movers and shakers on Parliament Hill? Advertise in our newsletter. Contact Jesse Shapiro to find out how: jshapiro@politico.com

Playbook wouldn’t happen without: POLITICO Canada editor Sue Allan, editor Willa Plank and Luiza Ch. Savage.

 

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Nick Taylor-Vaisey @TaylorVaisey

Sue Allan @susan_allan

Maura Forrest @MauraForrest

Kyle Duggan @Kyle_Duggan

Zi-Ann Lum @ziannlum

POLITICO Canada @politicoottawa

 

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