Industry Minister François-Philippe Champagne said the Canadian and American economies have become more integrated than ever before, which should act as a barrier against the threat of American protectionism.

Champagne and his fellow Liberal ministers will hold their third and final meeting today at a winter resort as preparation for the upcoming parliamentary session.

Economic factors and affordability dominated the first two days of discussions, but today matters will shift to the international level.

Specifically, the cabinet will discuss the upcoming presidential election in the United States and the very real possibility of former President Donald Trump’s return to the White House.

Foreign Minister Mélanie Joly said Canada is preparing for any possible outcome in the 2024 race for the White House, whether it is the re-election of President Joe Biden or a second chance for Trump.

Champagne explained that the Canadian and American economies have always been intertwined, but now they are more connected, with millions of jobs in both countries depending on this stability.

Champagne told reporters in Montreal on Monday, "The one thing I think former President Trump understands is jobs. And now the jobs, millions of jobs, depend on what we have achieved over the past decade," so I believe economic integration will be key to the future."

He said this includes semiconductors, biotechnology, and the automotive sector. In 2022, Canada pushed hard for an exemption from a provision in Biden’s Inflation Reduction Act to ensure that electric vehicles made with Canadian batteries or components would remain eligible for significant tax credits in the United States.

This division - initially, the credits were stricter regarding content designated for America only - helped Canada secure many major battery plants last year.

Champagne said in a December interview with Canadian Press that battery plants like those Volkswagen is building in Ontario would not have happened without the Inflation Reduction Act, adding: "It could have been much more difficult,” “I think the IRA was the catalyst for reshoring in North America."

He added, "If you look at the battery ecosystem, we have the strength, and my mission has always been to strategically position Canada in key supply chains, and now we have placed Canada into the strategic key supply chain, for example, electric vehicles in North America."

Laura Dawson, an expert in US-Canada relations and current Executive Director of the Future Borders Alliance, said, "Canada needs to prepare regardless of who wins because both Biden and Trump have protectionist tendencies."

Dawson added in an interview: "This is an important time to really assess this relationship and reinvest in it, because it is existentially important for both Canada and the United States for both the economy and security."

She is among a panel of experts who will make presentations to the cabinet today about the US-Canada relationship.

They will be joined by Kirsten Hillman, Canada’s ambassador in Washington, Flavio Volpe, President of the Automotive Parts Manufacturers’ Association, and Marc-André Blanchard, Executive Vice-President of the investment group CDPQ Global.

Dawson said there is work to be done on more efficient and integrated supply chains for economic and national security purposes.

Dawson added that the likelihood of Trump returning to the presidency requires "more direct work from Canada right now."

“We know what Trump looked like for Canada, and that was a challenge,” “But I don’t feel that experience leaves Canada well-prepared for Trump again, because although we understand the nature of this person, he is more prepared to launch a very aggressive campaign under the slogan ‘America First’ right from the gates,” and I think this will significantly impact Canada in a negative way.”

Dawson continued that Canada needs to start a national offensive now, sending ministers, consuls general, premiers, and industry leaders to meet American lawmakers, especially Republicans, and deliver Canada’s message to where it stands now.”