:00:00. > :00:18.US President Donald Trump and Canada's Prime Minister,
:00:19. > :00:21.Justin Trudeau, hold different views about many things,
:00:22. > :00:29.but can they agree on trade when they meet later today?
:00:30. > :00:32.And Japan's economy grew again, thanks to trade, but could rising US
:00:33. > :00:39.protectionism damage its slow recovery?
:00:40. > :00:45.In a moment, the chief executive of International Airlines Group,
:00:46. > :00:49.Willie Walsh, tells us about Brexit and Donald Trump.
:00:50. > :00:55.Another day, another world leader arriving to meet President Trump
:00:56. > :00:58.Today it is the turn of Canada's Prime Minister,
:00:59. > :01:04.He differs widely in opinion from his host on a variety
:01:05. > :01:06.of issues, including immigration, free trade and foreign policy.
:01:07. > :01:09.So just how important is Canada's relationship with the United States?
:01:10. > :01:12.Their countries share one of the biggest trading relationships
:01:13. > :01:18.In 2015, $662.7 billion worth of goods and services flowed
:01:19. > :01:22.That works in the United States' favour at the moment,
:01:23. > :01:25.to the tune of $12.1 billion, because whilst Canada sells more
:01:26. > :01:29.goods to the US than the other way round, America more than makes up
:01:30. > :01:31.for it when it comes to the services sector.
:01:32. > :01:34.75% of all Canadian exports go to the United States,
:01:35. > :01:41.so good relations will be important to businesses across Canada.
:01:42. > :01:46.The value of US-Canada relations has seen massive growth since 1994,
:01:47. > :01:47.when the North America Free Trade Agreement,
:01:48. > :01:53.signed by President Clinton, came into force.
:01:54. > :01:56.But during his campaign Mr Tump claimed Nafta was the worst trade
:01:57. > :02:00.deal in the history of this country, and shortly after taking over
:02:01. > :02:03.at the White House, he said he would meet the leaders of Canada
:02:04. > :02:22.The we are also meeting with the Prime Minister of Canada, and we
:02:23. > :02:26.will be meeting with the president of Mexico, who I know, and we are
:02:27. > :02:33.going to start negotiations having to do with Nafta. Anybody ever hear
:02:34. > :02:42.of Nafta? I ran a campaign somewhat based on Nafta. But we are going to
:02:43. > :02:47.start renegotiating Nafta, on immigration, and on security at the
:02:48. > :02:50.border. And Mexico has been terrific, actually, the Rydzek. --
:02:51. > :02:51.terrific. With me is US political
:02:52. > :03:00.commentator Kate Andrews. And just in Trudeau has been highly
:03:01. > :03:05.critical of many of Mr Trump's policies so far, yet securing a
:03:06. > :03:13.trade deal or continuing with the current deal is crucial for Canada,
:03:14. > :03:18.isn't it? He will be walking a fine line, but the difference is that
:03:19. > :03:21.just in Trudeau has been very vocal, you are right, about his opposition
:03:22. > :03:25.to many of Mr Trump's policies, especially on immigration front. We
:03:26. > :03:29.haven't seen him roll any of those back, we have seen him talking about
:03:30. > :03:33.Canadian jobs, he was talking about trade deals, he clearly does not
:03:34. > :03:36.want to go in and have tough conversations about immigration. He
:03:37. > :03:41.will try and focus on the economy, all the way. And part of that is
:03:42. > :03:46.about spending. And actually the Trump administration wants Canada,
:03:47. > :03:49.as well as other NATO members, to spend a lot more on defence
:03:50. > :03:55.spending. Is that likely to be quite an issue for Canada, politically?
:03:56. > :04:00.Well, Canada and Justin Trudeau have said they were up their spending but
:04:01. > :04:04.it is a small increase, .01%, or something like that. When it comes
:04:05. > :04:08.to those who are involved in NATO, Canada is certainly not putting up
:04:09. > :04:12.the amount they will are supposed to be posting annually. Will this be
:04:13. > :04:16.the main issue? Probably not, when it comes to alliances we always talk
:04:17. > :04:19.about the US and the UK and that special relationship at the real
:04:20. > :04:23.special relationship in trade is between Canada and the United
:04:24. > :04:26.States, tourists going back and forth daily, millions of visitors to
:04:27. > :04:31.each other's countries a year, and Donald Trump will not want to make
:04:32. > :04:34.an enemy here. He will be pleased that they are offering more
:04:35. > :04:38.spending, even as a symbolic gesture. Some decisions Mr Trump has
:04:39. > :04:46.made have already been beneficial for Canada, such as restarting that
:04:47. > :04:51.Keystone XL oil pipeline. I think they will differ when it comes to
:04:52. > :04:54.environmental policies but Trudeau will recognise that Trump is
:04:55. > :04:57.investing as much as he is in Canada. Even if that is not
:04:58. > :05:00.intentional, it will have a trickle-down effect. Donald Trump
:05:01. > :05:04.has been very quiet about negotiations between Canada and the
:05:05. > :05:08.US when it comes to Nafta. Most likely it would not have a huge
:05:09. > :05:13.influence on Canada, and if I were Trudeau I would be trying to get a
:05:14. > :05:17.grip on where Mr Trump is pointing his finger south, and that is where
:05:18. > :05:20.the real implications for trade are going to come from, not because
:05:21. > :05:24.Donald Trump is directly trying to cut off trade with Canada but
:05:25. > :05:29.because his relationships with other world leaders could certainly impact
:05:30. > :05:31.on Canada. Thank you very much for your time.
:05:32. > :05:34.Time for a new series now about the big challenges facing
:05:35. > :05:37.Late last year, British Airways owner International Airline Group
:05:38. > :05:40.was forced to cut its profits forecast, due to a weaker pound
:05:41. > :05:44.So is economic uncertainty surrounding Brexit something that
:05:45. > :05:46.keeps IAG's chief executive Willie Walsh awake at night?
:05:47. > :05:49.He has been speaking to our business correspondent Theo Leggett,
:05:50. > :06:00.who asked him what he would like to see from Brexit negotiations?
:06:01. > :06:07.Well, it affects everybody in Europe. So it is not an issue that
:06:08. > :06:11.will be isolated to the United Kingdom. It will affect everybody in
:06:12. > :06:15.Europe. And that is why I say it is in the interests of everyone in
:06:16. > :06:19.Europe, and it is something that I imagine all politicians would be
:06:20. > :06:23.conscious of. There are 900 million consumers who have benefited from
:06:24. > :06:28.the regime that is in place, and that needs to be maintained. And I
:06:29. > :06:31.believe it will be maintained. You say you are confident that those
:06:32. > :06:35.negotiations will go as you want, that you will get what you want. If
:06:36. > :06:39.that doesn't happen, what is the worst case scenario? I don't think
:06:40. > :06:43.there is a worst-case scenario. We deal with aviation regulation on a
:06:44. > :06:50.global basis and I think people are fixated on the UK and Europe
:06:51. > :06:54.obviously in the context of Brexit, but many countries we fly to have
:06:55. > :06:58.restrictive regimes in place and we have had to put structures in place
:06:59. > :07:02.to deal with that. We are confident that, whatever the outcome, if there
:07:03. > :07:05.is a more restrictive regime, we will be able to adapt our structures
:07:06. > :07:09.and operating procedures to continue to operate. It won't be as
:07:10. > :07:13.efficient, it probably won't have the same consumer benefits, I don't
:07:14. > :07:18.think there is a doomsday scenario that would cause any concern. Of
:07:19. > :07:23.course, uncertainty at the moment isn't just confined to the UK or
:07:24. > :07:25.even Europe. There is a new Administration in the White House.
:07:26. > :07:30.What Donald Trump and his people have done already has surprised many
:07:31. > :07:34.people. They have been a ban on travel from seven different
:07:35. > :07:37.countries, for example. How much of concern is that for you? It is
:07:38. > :07:42.something that causes concern for individuals. From an industry point
:07:43. > :07:46.of view, again, we are able to adapt. We have seen these measures
:07:47. > :07:50.in the past, they come in unannounced and it takes us a bit of
:07:51. > :07:54.time to adjust. We adjust and then we move on. When you look at
:07:55. > :07:57.aviation between the US and Europe or the US and the UK, it is
:07:58. > :08:04.definitely something that has worked very well. The US industry, the UK
:08:05. > :08:09.industry, the European industry, I think we are all aligned. We want to
:08:10. > :08:11.see the current open skies regime continue. We don't want to see new
:08:12. > :08:12.barriers put in place. Japan's economy grew for a fourth
:08:13. > :08:15.straight quarter in the final three months of last year,
:08:16. > :08:17.thanks to strong exports, but there are concerns that rising
:08:18. > :08:20.protectionism in the United States could mean that a sustainable
:08:21. > :08:23.recovery is some way off. Sharanjit Leyl is in
:08:24. > :08:33.Singapore for us. Hello there. So the weaker yen
:08:34. > :08:39.boosting exports? That's precisely it. And of course, you talked about
:08:40. > :08:44.protectionist rhetoric. That has been quelled somewhat, at least the
:08:45. > :08:48.concerns have been quelled somewhat, after the weekend meeting between
:08:49. > :08:52.President Trump and Japanese Prime Minister Shinzo Abe in Washington,
:08:53. > :08:56.where we saw President Trump steer clear from any rejectionist
:08:57. > :09:01.rhetoric, and indeed, as you say, those exports getting a huge boost
:09:02. > :09:04.from the weaker yen, and that is really what has helped Japan's
:09:05. > :09:10.economy in the last quarter. The weaker yen has always listed
:09:11. > :09:13.exporters' profits, being repatriated back from overseas from
:09:14. > :09:17.markets like the US which benefit from the US dollar, and that is the
:09:18. > :09:20.kind of protectionist rhetoric we have heard from President Trump in
:09:21. > :09:25.the past, especially when he has been on his campaign trail. He says
:09:26. > :09:31.Japan uses its monetary policy to verbally intervened to weaken the
:09:32. > :09:35.yen, to boost its exports, at the cost, huge cost, for the US and
:09:36. > :09:40.American trade. In fact, Japan had the second largest trade surplus
:09:41. > :09:45.with the US last year after China, and in terms of its own growth,
:09:46. > :09:51.private consumption, which accounts for some 60% of Japan's GDP, it
:09:52. > :09:54.barely grew at all. In fact, it was flat. There is a lot of concern
:09:55. > :10:02.about Japan's overreliance on exports for its growth in the
:10:03. > :10:06.future. Let's have a look at how the markets have been faring. Uplift for
:10:07. > :10:12.the Nikkei, the Hang Seng in positive territory, slightly down in
:10:13. > :10:17.Bombay. The dollar versus the yen, you can see the impact on that
:10:18. > :10:24.meeting of prime Minister Shinzo Abe and Donald Trump when they met at
:10:25. > :10:28.the weekend. So the weaker yen helping boost Japan's exports. That
:10:29. > :10:30.is all from me for now.