p.m. trudeau: i will stand up for canadian interests. we are now the only g7 country with a free-trade deal with every other g7 country. we continue to believe deeply that there is a win-win-win opportunity for canada, mexico, and the united states. ♪ p.m. trudeau: the g7 is a gathering of the world's most advanced economies to talk about the challenges we have in common. and there is one big economic challenge that is shared across

the g7 and much of the developed world, how do you reassure people that all the changes we are going through in our work places from automation, to ai, to greater trade deals, to globalization in general, how are these factors going to ensure that the growth we create is fairly shared by everyone? when you look at the anxiety of the aggressive nationalism, the polarization, insularity, the anti-trade, anti-globalization, all those facets that are slipping into politics all around the world, it stems from an anxiety that people feel that the system we have might be good at creating growth, but it is not good at creating growth that is good for all citizens. whether it was president trump getting elected on a commitment to make america great again, which means bringing in people who felt left out by the success, rece succe of the

growth in the united states, whether it is the same motivations that led to questioning by the u.k. voters of their association with the european union, we have a very similar challenge. how do we demonstrate that growth can be reassuring and confidence-building for larger segments of our population? there are places that have exacerbated the fears that people have about their future, about their kid's future. canada is working hard to allay those fears. having an honest and rigorous conversation about this shared challenge we face and some of the solutions we should be putting forward to create growth that is better for everyone is exactly one of the things we are talking about. we continue to believe deeply that there is a win-win-win opportunity for canada, mexico, and the united states on improving and modernizing nafta. we continue to work

constructively with the united states and mexico to do that. we know that trade is a very powerful lever to create opportunities, jobs, and growth in our economies. we understand there is an anxiety about trade out there in large segments of the population that don't feel it has worked well for them, and that is why as a country we have been working hard to make a case for trade, working hard to demonstrate that we can sign progressive trade deals where we demonstrated that issues like protecting the environment, gender equality, workers rights are integral in creating the success of trade deals that create growth. in any trade deal there are always ways to look for compromises, ways to understand we can get to a win-win-win, but i have said clearly that i will

stand up for canadian interests. i will only sign a deal that is good for canada. no nafta is better than a bad deal, and we have made that very clear with the president. we know there is a good deal to be had that can create gains for all three countries. that is the nature of the non-zero-sum game when trade is done properly, but we will not move ahead just for the sake of moving ahead. stephanie: in washington, people have been impressed by the way the canadians in particular have galvanized the business community and canadian businesses to go to congress people and senators -- wilbur ross said the canadian officials have spent more time on capitol hill than in official negotiations. do you find congressman easier to deal with than the administration? p.m. trudeau: i think one of the things that is an advantage for canada is the proximity and

level of iconneedness between canada and the united states. if you think of many other countries, the only interface is through their embassies and interactions. canada has a level of partnership that is unlike in any two countries in the entire world, so when we talk about whether it is prime minister to president, premieres to governors, legislators to legislators, business people to business people, there are huge and deep connections between us. when we want to talk about the advantages of trade and advantages of modernizing nafta, we find governors are extremely strong allies in that. members of congress are as well. they know, they see within their communities all the jobs that come from smooth access to the canadian market. the u.s. sells more goods every year to canada than it does to china, japan, and the u.k. combined. we are their number one

customer, and there is no question that any disruption of that flow of goods would be terrible for the canadian economy, but also terrible for a lot of u.s. jobs in an awful lot of industries. so, making sure that we are making the case for something that quite frankly a lot of americans take for granted, and rightly so. we ave always been there and worked seamlessly together, so highlighting the benefits of what we have always had has been the work we have done and i have to say that across political parties, the level of cooperation on this issue -- you will know that there are lots that i disagree with the other parties in the house -- but on this issue of renegotiating nafta and the common front we have shown, not just from the different parties in ottawa, but indeed from parties in

government across our provincial capitals, that has really been effective and strengthened our position in negotiations significantly with the united states where it is easy to see democrats might have one perspective, republicans another, ertain factions in the administration think one way, others think another way. there is not the same kind of unity that we have been able to bring to bear as canadians and that is not just a credit on a moral level. it is an extremely useful advantage in our negotiations. we have spent close to a year negotiating the modernization of nafta. i think there is a moment where we should be able to move on to other things. in the meantime, we have signed a number of trade deals. we are now the only g7 country with a free-trade deal with every other g7 country.

i was raised to believe that the growth of the economy and protecting the environment go together. when you have more women or better gender balance on boards or in organizations, you get a better quality of deon-makng. ♪

p.m. trudeau: getting a pipeline to new markets across the pacific is absolutely in the national interest. ♪ p.m. trudeau: i was raised to believe that the growth of the economy and protecting the environment go together. and one of the things we have seen time and time again through

the polarization of politics is people forcing a choice, either the environment or the economy. when we know, certainly if you talk to canadians, you hear clearly that people understand creating a strong growing economy for the long-term also requires protecting the environment. in order to protect our environment, we need a strong and growing economy. the idea that it is one or the other has always been to me, a bit of a false road. when we were elected two and a half years ago -- because we felt the previous government for 10 years had not done a very good job of protecting the environment, and because of that they had not done a good job of growing the economy. we wanted to demonstrate we could get public confidence in building big projects by both protecting the environment and moving forward in a way that contributes to economic growth, and that is why our plan to fight climate change features a

national price on pollution, a world-class oceans protection plan, but also getting our oil resources to new markets through responsible pipelines. one of the fundamental economic challenges we face in canada is that because we only have one market, the united states, for our oil resources, we lose about $15 billion every year, a $15 billion discount because we are captive to their markets, so getting a pipeline to new markets across the pacific is absolutely in the national interest. we don't intend to be in the pipeline business for the long-term. there is a strong business case for this pipeline, but we will ensure it gets built so that we can get our resources to new markets. stephanie: one of the questions, though, is how is nationalizing it going to make those pressures go away? there were environmental objections to this.

are you just going to steamroll over the opposition? p.m. trudeau: the challenge the pipeline proponent had was the political uncertainty involved when a province was determined to do everything it could to block the pipeline. when you shift the ownership of the pipeline from a private corporation to a government that has -- a federal government that has explicit control over resource projects that go between provinces, a lot of the legal barriers and a lot of the challenge points actually disappear. we approved this pipeline under the existing regulatory authority that we had enhanced. the provincial government in british columbia approved the pipeline with strong conditions, which we absolutely agreed with. we have the authority to proceed. it became a question of is

canada actually able to get big projects built? therefore, we are demonstrating, yes, we will do what we need to do to get projects we properly approved built. stephanie: you are demonstrating that the public sector could do that, but you are sending a message that a private sector investor should not expect this kind of infrastructure deal done in canada. p.m. trudeau: but we have also seen a number of pipelines built over the past years, a number of large energy projects built that did not need extraordinary intervention. this happened because one province decided to directly contest the federal government's authority to regulate and allow construction of inter-provincial works. this has been a long-standing element of canada's federation of our system of rules. the exceptional circumstances of a government going against the

federal government's authority required us to take this exceptional step to demonstrate that when we approve a project, we are going to move forward with it. stephanie: if this comes up again, because you do get these kind of conflicts on big, important infrastructure projects, you are willing to nationalize again? p.m. trudeau: we will always look at things on a case-by-case basis, as i've said, getting this pipeline built is in the national interest and we are confident that as this pipeline gets built, the business case is certainly strong enough that there will be buyers for this pipeline. we don't intend on holding onto this pipeline for the long-term. ♪ p.m. trudeau: the fact that there is still a gap in outcomes in power, in pay between men and women means we are not at the full potential of women contributing in the workplace. ♪

p.m. trudeau: we know that creating better opportunity for women and girls at home and around the world is going to lead to not just more growth, b actually better outcomes. ♪ p.m. trudeau: the issues that are causing so much of the political turbulence and the uncertainty around the world stem from fundamental anxieties that people have about the future, about their jobs, about their kids' jobs, and being able to share what we have been able to do in canada -- as you know we have been investing massively in ai, investing massively in the kind of technological

advances, whether it is quantum computing, robotics, what have you, that will be disruptive to our workplaces and the global economy, but to do those at the same time as we are investing in direct and indirect support for the middle class and people working hard to join it, whether we are investing in infrastructure in ways from public transit to housing to green infrastructure, we are demonstrating that we are reassuring and giving people confidence in the future we are building together and they will be integral players in the future we are building together through education, retraining. that the kind of anxiety that is leading to what is happening in itanwher is not taking root to the same degree in canada. stephanie: how will you make the summit memorable for the reasons you want it to be remembered for, rather than the headlines? what is your plan?

p.m. trudeau: my plan is to highlight that when we come together as leaders of the world's leading economies, we can tackle the things that are keeping canadianswried nd keeping all citizens worried, talking about growth that actually leaves room for everyone to participate. one of the pieces of that and one of the main points we are putting forward as part of the g7 is understanding that gender equality and including women in our success is not a moral argument. it is a moral argument, but not just a moral argument. it is very much an economic argument. when we think over the growth our economies have experienced over the past 20-30 years, the growth has been attributable and large part to entry into the workforce of strong, successful women. the fact that there is still a gap in outcomes, in power, in

pay between men and women means that we are still not at the full potential of women contributing in our workforce. and we know that creating better opportunities for women and girls at home and around the world is going to lead to not just more growth, but better outcomes. we have all seen the studies that have highlighted when you have more women or better gender balance on boards or in organizations, you actually get a better quality of decision-making, better growth over the long and medium-term, this is a compelling argument that you create better success and better growth for our countries and world when you include women. that is why instead of giving a gender theme a specific focus within the g7 as is often the case with specific themes, we have made it a horizontal focus.

we have put together a gender advisory council with extraordinary leaders from around the world who have been at every ministerial meeting, who are part of every element of decision and discussion around what the g7 is doing to make sure that we are thinking about including women and the impact on women and other intersectionalities on everything we do. and again, not as a moral argument, but an economic argument, as not just as the right thing to do, but the smart thing to do. when you want to solva problem and put a group of people pretty close to identical in their education paths, in their identities and socioeconomic status, you will not get the same kind of creative thinking or out of the box solutions that you would actually get if you bring together a diverse group of experts from different

fields, different backgrounds, different life stories, different perspectives. if that is the case in solving a specific problem, it is even more the case when you are trying to do justice by serving an extraordinarily diverse, geographically, ethically, historically, culturally, country like canada, and making sure that we have a broad range of voices has been transformative in the kind of discussions had and the solutions put forward. canada, well, by definition, maybe because of our winters and the distance between communities, we have always known we have to be there for our neighbors. we have to make sure there is success for all of us. we are eager to lean on each other to create that success, and that brings a mindset where we are aware that having good public schools, having a public health system, having an opportunity to train and retrain

workers in the job market, a strong safety net for people who lose their job so they can retrain, income support for low income workers so they can get better jobs in the medium-term to support their families, welcome an integration process for immigrants because we know that adds to the workforce at a time the population is aging and the birth rates are not keeping up. these are the things we have chosen to put forward as the right measures of success for canada, and there are an awful lot of companies and wealthy individuals who realized that that is a much more sustainable path for the long-term than the short-term approach that perhaps the u.s. is taking right now. stephanie: because there is a lot of business people listening, there are certainly a lot listening to what you just said. this guy does not get we are

losing competitiveness, and that may not affect growth right now, but if you look at the investments they need to make, he's talking about they don't want to be ruthless and success at any cost. doesn't that sound complacent? p.m. trudeau: on the contrary, i have been quite vocal about the fact that canadians need to be more forward thinking and innovative, more excited about the future, taking bigger risks around the world, taking bigger risks around the world and taking more risks and smarter risks being investing in canada, absolutely. i will not accept the only single bottom-line approach to business is going to be sustainable. in a world where income inequality is driving political actions and reactions that are leading to instability. you have a lot of countries around the world that are democracies that are starting to

backslide, or moving actually in significant ways, and i'm not going to call russia a democracy, but the president has announced that he is on his way to staying president for life. we see the same thing in china with the changes xi has made to the communist party structures. we see places where the democratic principles are being worn away, and i think it is really important for countries to stand against that, to actually demonstrate by reassuring their citizens that no, we do think about success for everyone and not just success for the business owner as being the only sustainable model. yes, there will always be people who are much more successful than others. even as i spoke with the business audience about the fact that i have raised taxes on the wealthiest 1% and lowering them on the middle class, when the middle class and people working

hard to join them have more money in their pockets, when people who actually spend their money are more confident about having hat money to spend, more confidntbtheir f and their kids' future, ihave no worries that businesses will be able to be profitable and do very well when more people have confidence and money to spend in our society. that, for me, is perhs flies in the face of the trickle-down economics that people are still clinging to, but i don't believe those. i believe ifou strengthen the middle class, strengthen the majority of the population that is worried about their future and don't have the kinds of depths of pockets that the business community does, that the entire society will do better and the political context

will get much less polarized, and that ultimately is the only way we are going to be able to move forward in a world that is strained and polarized in its politics right now. ♪

>> will be increase and output or discretion to go to. the trump effect. trade skirmishes battle every market. it is getting hot in here. production in russia should fall 5%. ♪ alix: i am alix steel and this is bloomberg commodities edge.