DR. TAMMY NEMETH 

Canada is exploring a European-style Carbon Border Adjustment Mechanism (CBAM) to align with the EU’s climate policies, but experts warn that adopting this model could impose heavy regulatory burdens and compliance costs on Canadian exporters. Imitating the EU’s complex protectionist system may weaken Canada’s trade competitiveness and strain critical economic and defence ties with the United States.

Rather than copying the EU, Canada could pursue smarter trade diversification strategies, focusing on policies tailored to national priorities and strengthening its global position. By rethinking its approach to CBAM, Canada can protect its industries, maintain healthy export markets, and safeguard economic and security interests without unnecessary regulatory overload.

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