(OTTAWA) German Chancellor Olaf Scholz’s three-day visit last week marked a turning point in relations between Canada and Germany.
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It was possible to lay the foundations for a strong reconciliation between the two countries in three aspects: political, economic and energy.
Germany is the largest economy in Europe. In addition to France, it has a significant impact on positions adopted by the European Union. But in power circles in Ottawa, the United States, Canada’s most important trading partner, has always been favored, followed by Great Britain and then France. Although “Deutschland” has been the planet’s fourth-largest economic power behind the United States, China and Japan since 2007, Germany has appeared far off the radar.
As proof, there was a stir in March when Minister François-Philippe Champagne asked his ministry officials to prepare an information book and a list of the telephone numbers of the leaders of big German companies, in anticipation of a trade trip he plans to make in May. After a few days, we were struggling to find the information he was asking for. At one point, he was instructed, among other things, to dial 1 800 Volkswagen to succeed in obtaining the desired information about the management members of the automotive giant, it was said behind the scenes.
“Germany is not really on the radar in the ministry,” said a government source who preferred to speak on condition of anonymity.
“Minister Champagne made a week-long visit to Germany and he said to the ministry: if you want to follow me, you’re welcome! He was able to develop all this through the contacts he had in Europe,” added the source, stressing that Mr. Champagne spent almost 20 years in Europe.
Trade mission
Within a week, Minister Champagne and his entourage traveled to five cities to plead Canada’s case before German businessmen. He particularly traveled to Berlin, Volkswagen’s headquarters in Wolfsburg, Mercedes-Benz and Munich (BMW) to meet with Stuttgart.
Why did he decide to undertake such a trade mission? His close aides sent him a text from the daily The New York Times In March, it was revealed that Germany’s major industries intend to accelerate the pace of greening their supply chains.
“When I went to Germany, I got a message: I understand your decarbonization problem. […] Canada is part of the solution. After China and Germany we have the third largest corridor, which is Windsor-Detroit. We have talent. We employ more than 500,000 people in the automotive sector. We have natural resources, renewable energy and I have access to 1.5 billion consumers without customs duties due to free trade agreements,” the minister pointed out to his interlocutors.
This message fell on deaf ears. Further meetings were held with automaker executives at the Davos summit in June. Text messages have increased. Calls too. Four months later these efforts bore fruit.
Agreements
Last Tuesday, the Canadian government signed separate agreements with Volkswagen and Mercedes-Benz that will allow the two German automakers to access Canadian raw materials (cobalt, graphite, nickel and lithium) for electric vehicle batteries. Prime Minister Justin Trudeau and German Chancellor Olaf Scholz attended the signing ceremony in Toronto.
The next day, Mr. Trudeau and his German counterpart signed another agreement in Stephenville, Newfoundland, this time on green hydrogen production and the creation of a transatlantic supply chain from 2025. Germany is banking on this clean energy to decarbonize its economy. And break free from dependence on Russia and its natural gas.
“The Germans now see Canada as a partner of choice, a serious partner and a strategic partner. It’s now up to us to make that happen,” Minister Champagne explained in an interview. Press.
Affectionately dubbed the “Energizer Rabbit” by many in liberal ranks, these deals send a powerful message to foreign investors.
“When a large manufacturer like this comes to Canada, it sends a message to the rest of the world: Canada will play a key role in the green automotive supply chain of the future,” he said.
“We envision an ecosystem of electric vehicle batteries. We built it. We did it in Quebec with Minister Pierre Fitzgibbon and also in Ontario. Now, we are in the process of optimizing it,” he said.
In July, Mr. Champagne traveled to Japan to deliver the same message to businessmen. We’ll know in less than three weeks if he succeeds in striking a “deal” again, to use Prime Minister Justin Trudeau’s expression when he welcomed the Japanese delegation to Ottawa when he spoke of his minister’s persuasive powers. When Moderna decided to open a factory in Quebec.
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