The world is on edge. Canada isn’t ready yet.

Article Contents

Perrin Beatty, who served as Canada’s defence minister at a critical juncture and then briefly as foreign minister, understands better than anyone what Canada’s lack of military readiness means and says politicians of all stripes should abandon easy assumptions about the world.

“We are living in the most dangerous time in the world in my lifetime,” Beatty said, noting that Canadians do not live in “fireproof homes.”

Article Contents

A major failure of the Trudeau government was its failure to acknowledge how the world changed the day Russia invaded Ukraine, Jean Chrétien, the Progressive Conservative who was later appointed head of the CBC, told Beatty.

“We are dealing with an expansionist Russian regime that has no regard for international law,” he argued, adding that “Russia does not get along well with its neighbors, and we are one of them.”

Perrin was a member of Prime Minister Brian Mulroney’s cabinet during the Cold War, and served as defence minister for several years in the mid-80s, in a polarised world where everyone knew the rules.

“The Soviets were armed to the teeth. They were looking to get at us, but we didn’t have the capability,” Perrin said, leaning over a computer screen from the steamy screened porch of his Ottawa home, visibly vivid at the memory. “We knew that the Soviets and the Americans were trying to get under the ice in the Arctic, in the Canadian Arctic,” he explained. “They had the capability to get there, but we didn’t. In our own waters.”

Article Contents

Article Contents

In 1987, Defense Minister Perrin published a Defense White Paper calling for a major increase in spending, including the purchase of a fleet of nuclear submarines capable of operating in the Far North. Reading a decades-old document, I was struck by an overwhelming sense of déjà vu: here we are, discussing the very same issues and once again embarking on the purchase of submarines to defend the Arctic, albeit in a world that is arguably much more dangerous.

“The basic principle (of the white paper) is that when you outsource your defense to another country (the United States), it is a protectorate, not a sovereign state, and so you have to accept that protection on the terms that are offered to you,” Perrin explained.

Perrin echoed the blunt advice given to him by Admiral Charles (Chuck) Thomas, then head of the Canadian Navy: “Minister, you can have sovereignty as long as you’re prepared to pay for it.”

Incidentally, Perrin points out that Admiral Thomas’ daughter is Jody Thomas, who recently retired as national security adviser to Prime Minister Justin Trudeau.

Article Contents

Perrin goes into further detail to clarify this point: In essence, the admiral was saying, “If you want to free ride, don’t think of yourself as a sovereign nation. If you want to be truly sovereign and exercise jurisdiction over your own territory, you have to be prepared to shoulder the burden of doing so.”

The Mulroney government chose sovereignty.

Another of Perrin’s decisions as the political leader of the Canadian Armed Forces was to withdraw Canadian troops from operations when it was clear they were not up to the task, including Operation Brave Lion, which was defending northern Norway from a Soviet attack. “We have a moral contract with the men and women of the Canadian Armed Forces,” Perrin declared firmly, “and we ask them to be willing to give their lives in defense of their country.”

“That’s not an abstract concept. It’s a reality,” he continues. “That’s what their contract is for. And the purpose of our contract is to give them an actionable mission and then give them the tools to get the job done.”

The Mulroney government collapsed in 1993 and Perrin’s White Paper was killed by the Chrétien Liberal government.

Article Contents

Another Mulroney-era initiative, the Canada-US free trade agreement, was more successful and has since been expanded to include Mexico, becoming the current United States-Mexico-Canada Agreement (USMCA).

After leaving politics, Perrin was tapped to take on a number of leadership roles in Canada’s trade relations. In 1995, Chretien appointed him head of the Canadian Trade Commission, and in 1999 he was named president of the Canadian Association of Manufacturers and Exporters. And for the past 17 years, he has been CEO of the Canadian Chamber of Commerce. At the end of August, Perrin will hand over the baton to Candace Lane, an executive at Nutrien.

But it would be a mistake to assume he’s retiring: Right now, Perrin is working with Fen Hampson of Carleton University to assemble a national team of former officials, businesspeople and academics (Perrin’s “Team Canada”) to consider what the country can do to strengthen bilateral ties with the United States and prepare for the upcoming renewal of the USMCA on July 1, 2026.

Article Contents

“So we essentially have less than a year left to strengthen our relationship with the United States and convince the American people that USMCA should not be scrapped, that it is in both our interests. Otherwise, unless the three countries agree to simply extend the agreement — with some tweaks — we’re going to be renegotiating it every year for the next 10 years, which would be extremely detrimental to Canada.”

With a growing protectionist atmosphere in the United States, Perrin is understandably concerned that Canadian trade negotiators will be undermined by their American counterparts.

“A charm offensive by Canada, like we did when negotiating the USMCA, is not going to be effective,” Perrin predicted, adding that “we went before all other countries and unilaterally imposed a digital services tax that the U.S. sees as being aimed at us.” The digital services tax has already led to calls for retaliation, Perrin said.

As for protecting the dairy supply-management system, Perrin continues, “It’s like putting up a neon sign with an arrow on it that says to Americans, ‘Make this your top priority.'” And he predicts that the effect will be the opposite of what politicians were trying to achieve. “Politicians need to take the Hippocratic Oath,” Perrin suggests, with a sly smile on his face. “Do no harm, and stop tugging on the tail feathers of the American eagle.”

Article Contents

“Trade is a priority for Canada,” Perrin asserts, throwing his hands up. “Why? Because three-quarters of Canada’s trade is with the United States. But for the United States, that’s a much smaller part of international trade, and it’s actually shrunk since the USCMA was signed.”

“If you listen to what’s being said during the election, the No. 1 issue for the United States is security,” Perrin stressed. “Not just physical security, whether we’re dealing with Russia or China, but border security and economic security.”

Perrin stresses that Canada cannot enter into trade talks with the United States without resolving several other issues, and that security is a top priority for the United States.

It’s too late to connect the dots.

Our website is the home for the latest breaking news, exclusive scoops, long-form articles and thought-provoking commentary. Bookmark nationalpost.com and sign up here for our daily newsletter, “Posted.”

Article Contents