OTTAWA - Prime Minister Justin Trudeau says he's speaking with his finance minister and Canada’s central bank governor as they monitor the stock market plunge sparked by Britain's referendum vote to leave the European Union.
But longer-term fears emerged on this side of the pond about what the break-up could do to Canadian trade prospects.
In a speech in Quebec City, where Trudeau is celebrating Saint-Jean-Baptiste day on Friday, the prime minister said Canada's economy is strong, diversified and resilient.
"We respect the choice of the British people and will remain a strong partner of the U.K. and the European Union. Our shared histories and common values make us natural trading partners and we will continue to work with both of them as we move forward with this new decision," Trudeau said.
After his French-language remarks about Brexit, Trudeau started to repeat them in English and was booed by the crowd celebrating the Quebec holiday.
Neither Trudeau nor Finance Minister Bill Morneau, who said he's spoken with his G7 finance minister colleagues and central bank governors, addressed whether there's a risk the Canada-EU trade deal could get lost in the background as the Europeans focus on Britain's impending exit. The agreement was negotiated under the previous government but all member countries of the EU need to sign off on it before it's final.
"We reaffirmed our confidence in the U.K.’s economy and financial sector," Morneau said in a statement.
"While some market and economic volatility can be expected, the Canadian economy is well placed and our financial institutions are well funded. Global markets are resilient and orderly, and we will continue to monitor developments."
In a statement earlier Friday morning, Trudeau also thanked British Prime Minister David Cameron for being a close ally and good friend to Canada. Cameron, who backed the losing side in the referendum, says he will resign by the fall.
Trade concerns raised
On Thursday, Britons voted 52 per cent in favour of leaving the 27-nation EU.
Interim Conservative leader Rona Ambrose urged the Liberal government in Canada to fight to ratify the Canada-EU trade agreement.
"This significant trade agreement can generate new jobs and new customers for Canadian goods and services, and the Liberal government must show leadership to ensure it does not become a casualty of a period of uncertainty in Europe," Ambrose said in a statement Friday.
She also made some pointed remarks about democracy, praising Cameron for his courage in being "strong enough to accept with grace the democratic will of those he leads." The Conservatives have been arguing for a Canadian referendum on electoral reform to choose whether to move away from the existing first-past-the-post system and to choose which system should replace it.
"There is no substitute for the direct democratic voice of a country’s citizens in determining the answers to critical questions about their own future," she said. "The U.K. government, but more importantly the people of the U.K., have engaged in a vigorous debate and have made their voices heard."
International Trade Minister Chrystia Freeland said in a statement that she was in touch early Friday morning with EU Trade Commissioner Cecilia Malmström.
"We remain committed to growing global trade that is good for Canada's economy, good for the environment, good for labour, and good for people," Freeland said.
"Millions of Canadians have strong, personal connections with the United Kingdom... We want Britain to succeed and prosper."
Conservative MPs congratulate U.K.
Mel Cappe, a former Canadian high commissioner to Britain, said the U.K. is going to spend the next two years - and potentially the next decade - negotiating with the other 26 member countries of the EU.
"They will have to replicate a lot of agreements with a lot of countries, including Canada," Cappe said in an interview with CTV News.
The former diplomat says he believes the EU deal will go ahead, but it won't include Britain, Canada's third-biggest investment and trading partner.
"For that, we'll have to recreate a new agreement to allow for that kind of trade. That's just very costly to have to go back to square one and have to do it again," Cappe said.
Trudeau said on Wednesday in Ottawa that he hoped the referendum outcome would "continue to assure that CETA has as many strong voices in support of it as we move forward towards ratification and implementation of an important deal for Canadians, for jobs and for our shared future."
Trudeau and Morneau had both warned against the consequences of the U.K. leaving the EU.
"I’ve made no bones about the fact that I always believe that we are stronger together, but I will allow the people of Great Britain to make their own determination," Trudeau said on Wednesday in Ottawa.
Morneau warned a London audience earlier this month that thousands of jobs at Canadian companies in the U.K. could be at risk if they invested in the country to gain access to the European market.
Britain's exit from the EU is raising questions about what it means for the Canada-European Union Trade Agreement.
Britain’s High Commissioner to Canada, Howard Drake, says his country will be trying to push the Canada-EU deal the way it always has.
“Getting CETA done seems to us absolutely an important part of that. It's a great deal for the European Union. It's a great deal for Canada,” he told Mercedes Stephenson, host of CTV’s Power Play.
Trudeau said on Wednesday that he hoped the referendum outcome would "continue to assure that CETA has as many strong voices in support of it as we move forward towards ratification and implementation of an important deal for Canadians, for jobs and for our shared future."
Not all Canadian politicians regretted the result.
Conservative MP Jason Kenney tweeted his congratulations to the British people for "embracing a confident, sovereign future," and criticized Trudeau for speaking against the leave campaign.
Justin Trudeau was wrong to interfere in the British people's internal democratic decision on EU membership. A terrible, short-sighted gaffe
— Jason Kenney (@jkenney) June 24, 2016
"Justin Trudeau was wrong to interfere in the British people's internal democratic decision on EU membership. A terrible, short-sighted gaffe," Kenney said on Twitter.
Foreign affairs critic Tony Clement echoed the sentiment.
What a magnificent exercise in democracy as Britons vote #Leave. Canada should respect this choice & engage with both UK & EU. #BREXIT
— Tony Clement (@TonyclementCPC) June 24, 2016
"What a magnificent exercise in democracy as Britons vote #Leave. Canada should respect this choice & engage with both U.K. & EU," he wrote on Twitter.