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My European Favourites – Segovia, Spain

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Spain is one of our favourite countries to visit in Europe. The warm sunshine, the history, the architecture, the gastronomy, and above all, the passionate and friendly people make it a desirable location. We have been to Spain with sightseeing groups, school groups and soccer groups. Madrid, the Spanish capital is always included in our itineraries. In addition to exploring the city, there are numerous worthwhile day trips to surrounding towns. Segovia is one of those towns.

Segovia is located about an hour northwest from Madrid and the day trip is sometimes combined with a stop in the nearby medieval walled city of Ávila. Segovia is just inside the large northwestern Castile and León region of Spain. The region consists of an expansive high plateau surrounded by a ring of mountains.

Segovia’s old town is perched high on a rocky hill surrounded by the Eresma and Clamores rivers. Declared a UNESCO World Heritage site in 1985, the old town features an impressive cathedral, numerous Roman churches, a Jewish quarter, and the striking Alcazar or castle. The town is full of Roman and medieval structures including the massive Roman aqueduct.

A Brief History Of Segovia

There was already a settlement by the Aravaci, a Celtic people, for over 600 years in Segovia prior to the Romans arriving in 96 BC. The Romans installed a military installation here to control access to the Douro River region in the north, and they built the aqueduct to bring in fresh water from the surrounding mountains. After the Romans left, Segovia was inhabited by people from northern Europe until the Spanish invasion by the Moors in the early 8th century.

 

Panoramic view of Segovia with the Cathedral at the centre.

After the reconquest by Christian Kin Alphonso VI in 1079, Segovia was resettled by Christians. Numerous parishes and monasteries were established in area. Due to its location on main trading routes, Segovia reached its golden age during the middle ages due to the foundation of a cloth industry. The town experienced a rise in the Jewish population and became an important centre for wool and textiles.

In the 13th century, Alfonso X, King of Castile, León and Galicia, made Segovia his residence.

Later in the 15th century Henry IV, King of Castile, also made Segovia his residence, built important buildings, renovated the Alcazar, and made Segovia the site of the Royal Mint.

Segovia is also known as the place where Isabella the Catholic pronounced herself Queen of Castile in the church of San Miguel in 1474. Afterwards, she married king Ferdinand II, King of Aragon, to create a unified Spain. They are probably best known for financing the voyages of Christopher Columbus.

In the mid 16th century there was a revolt by the citizens of Castile against King Charles I and his administration. The “War of the Communities of Castile” lasted 18 months from April 1520 to October 1521. One of the rebel leaders, Juan Bravo, was from Segovia and has a statue in the main square. He was captured in the Battle of Villalar along with two other prominent rebel leaders. They were beheaded the following day. Despite the rebellion Segovia remained prosperous and the population grew to approximately 27,000.

Segovia’s decline started with an outbreak of the plague in the late 16th century and then mostly by the subsequent 17th century collapse of the textile industry. By 1694, the population dropped to just 8,000. Later attempts to revive the textile industry by King Charles III failed. In 1764 a military academy, the Royal School of Artillery, was established and is still in operation. In 1808, during the Napoleonic wars, Segovia was sacked by French troops.

19th century Spain had three Carlist Wars related to claims to the throne of Spain. During the first Carlist War, Segovia was unsuccessfully attacked. Since then, it has escaped military destruction, including during the Spanish Civil war from 1936 to 1939 that pitted the Republicans against the Nationalists led by Francisco Franco. In fact, since 1920 the population of Segovia has grown from 16,000 to over 50,000 in the early 80s. The population has stabilized in the last 40 years and the economy along with it.

The Roman Aqueduct, the Candido restaurant, and the aqueduct from the Plaza del Azoguejo.

The Roman Aqueduct

Our walking tour begins at the Plaza del Azoguejo and you can find a google map of our walk at www.azorcan.net/media to follow along. Once a market place, the plaza is located at the foot of the colossal Aqueduct of Segovia. The 28.5 meters tall aqueduct bridge, known locally as El Puente (the bridge), is one of the best preserved in the world. Built by the Romans at the end of the 1st century from stacked granite, the aqueduct transported water over 15 kilometers over rolling hills from the Sierra mountains to the town. The pillars and arches are solid rock with very little mortar in between. The aqueduct continued to supply water for many centuries after being built by the Romans and is one of the most recognizable landmarks in Spain.

The Artillery Academy of Segovia, which recently celebrated a 250 year anniversary in Segovia, is located a few blocks from the plaza in a former 15th century Franciscan convent with an interesting Gothic cloister.

Located in a half-timbered house on the south side of the Plaza del Azoguejo, you will find the famous Cándido restaurant. Since 1905, three generations of the Cándido family have been serving their famous suckling pig, stews and wines. The official Tourist Office of Segovia is located across the square from the Cándido. From the plaza, we will walk up the Calle Cervantes. Calle means street, and this one is named after the most famous Spanish literary figure, Miguel de Cervantes. Cervantes is best known for being the author of the literary classic, Don Quixote.

The Miradouro de la Canaleja, the panoramic view, and an interesting building at the viewpoint.

The Medina de la Campo and the Jewish Quarter

About 200 meters from the Plaza del Azoguejo, we arrive at an observation terrace named the Mirador de la Canaleja. Here we can admire a fantastic panoramic view of the lower town’s pastel colored buildings with red roof tops.

There is an interesting light blue building on the north side of the Mirador with three stacked sunrooms. We walk along the side of this building on the Calle Juan Bravo, the street named after Segovia’s rebel leader. A few steps away on the right is the eye-catching Casa de los Picos. The 15th century historic Gothic-Renaissance building is decorated with numerous pyramids or diamond tips made from granite and now houses the School of Art and Superior Design.

The Palacio de Cascales façade, the narrow Calle de Juan Bravo, and the Casa de los Picos.

A bit further on the Calle Juan Bravo we will come upon a little plaza on the left that leads to the Palacio de Cascales. The palace is known by a few names from its past including the Aspiroz or the del Conde Alpuente. Nowadays, it is used for the offices of the Ministry of Development of the Junta de Castilla y León. The palace was built in the 15th century by a prominent knight from Segovia named, Alonso Cascales. Its façade features Gothic windows, a unique pattern on the walls, and a Moorish or Mudejar arch kept from the original Arab building that was once there.

The Church of San Martin, statue of Juan Bravo in front of the Tower of Lozoya, and one of our school soccer academy groups.

A short distance away along the Calle Juan Bravo is the square of Medina del Campo. The square contains three notable buildings, the house of Juan Bravo, the Tower of Lozoya and the Church of San Martin. The 14th century rectangular shaped Tower of Lozoya, was once used as an armoury. The tower is now used to exhibit contemporary art. The 12th century catholic Church of San Martin, at the centre of the square, is an interesting mix of Arabic and Romanesque elements.

Moving forward on the Calle Juan Bravo, we will reach the small square Plaza Corpus. The square is named after the Corpus Christi Church which is located on the left side of the square. The church was once the largest Jewish Synagogue in Segovia starting in the 13th century. You can visit the interesting church that was converted from a synagogue in 1410 as it is open to the public.

At the Plaza Corpus you will reach a fork in the rod. The Calle la Juderia Vieja (Old Jewish Quarter Street) is on the left, and as the name implies, it leads to the Jewish Quarter. We will take the Calle Isabella la Catolica (Isabella the Catholic) on the right to the Plaza Mayor (Main Square).

Entrance to the Corpus Christi Church. The town hall and cathedral on the Plaza Mayor.

Plaza Mayor

The Plaza Mayor is the central hub of the town of Segovia. The large rectangular cobblestone square has a performance gazebo at its centre surrounded by trees. The square was once a market place in medieval times, and Segovia’s citizens still meet here to celebrate festivals and to enjoy the numerous bars and restaurants spilling onto the square from the arcades. The square still hosts a market every Thursday. The La Concepción on the north side of the square is a bit pricy, but its terrace is a great place from which to people watch. Next to the restaurant is the 17th century Segovia town hall.

On the east side of the Plaza Mayor is the Juan Bravo Theatre. Built in 1917 and refurbished in the 1980s, it is the principal theatre of Segovia. A few steps away on the south east of the square behind the luxury priced Villena restaurant is the 16th century gothic San Miguel Church.

The church is famous for being the place where, in 1474, Isabella the Catholic was crowned Queen of Castile. Exploring the maze of alleys and squares behind the San Miguel Church, you will find various interesting and moderately priced bars and restaurants. The El Sitio and the El Figon de los Comuneros are two great choices for lunch.

 

The Segovia Cathedral on the Plaza Mayor and a panoramic view of the cathedral and its tall tower.

Located on the west side of the square, the main building on the Plaza Mayor is the Cathedral of the Assumption. As the highest point of Segovia, the cathedral, built in late gothic style between 1525-1577, can be seen for miles around. Construction began after the original cathedral, located near the Alczar, burned in 1520. The cathedral can be toured and the view from the cathedral tower is memorable.

The Tower of John II at the entrance to the Alcazar, the Weapons Patio and the Clock Yard.

Segovia Alcazar

From the cathedral, we will walk about 600 meters on the Calle Marques del Arco which becomes the Calle Daoiz to the Plaza la Reina Victoria Eugenia (Square of Queen Victoria Eugenia). The Queen’s square is a nice garden located at the forefront of the entrance to the Alcazar. In addition to the imposing castle façade, there are great views of the Spanish countryside from the garden. On the left, there is a building called the Casa de la Química. There is a cafeteria there with a nice terrace with an amazing view of the town. There are better places for a meal, but it’s a good place to enjoy a drink under the shade of a patio umbrella on a hot day.

Like most fortresses, the Alcazar is built on an elevated area that offers a natural defensive advantage. The Alcazar’s site, on a large rock promontory at the spur of the Eresma and Clamores rivers, was a fort during the Roman occupation in the 1st century. Since Roman times, the castle has been rebuilt and expanded many times over hundreds of years by different people including the Romans, the Muslim Umayyad Dynasty in the 8th century and eventually the Spanish in the 12th century. Over time, the Alcazar has been used as a fortress, a royal palace, a prison, and a military school. The picturesque Alcazar is now a museum, a major tourist attraction, and one of the most recognizable castles in Europe. The original building from the 13th century was painstakingly restored after a devastating fire in 1862.

Statue of Ferdinand VI, the Armoury, the Throne Room, the Chapel and a panoramic view.

Approaching the Alcazar from the Queen’s square, we are faced with the imposing Tower of John II and the draw bridge. Once inside there are two staircases with 156 steps leading to the top of the tower where you can enjoy a great view of Segovia. Entering further, we arrive at the first major open area of the fortress, the Parade or Weapons Patio with a colonnade and upper walk way. This is the largest open space in the Alcazar, and along with the next outdoor area, the Clock Yard, has a great deal of Moorish influence.

At the back of the fortress, there is the Armoury with medieval flags, lances, swords, knights armour and even armour for horses. The “V” shaped well terrace at the very back looks like the bow of a boat gives the castle the appearance of being a large rock ship. The Alcazar’s garden, with shrubs in geometric shapes, is also located at the back of the castle.

The Alabaster Hall, stained glass with the Spanish coat of arms and the Armoury.

Other interesting rooms include the Chapel, Throne Room, Royal Bedrooms, a Pineapple Room, the Alabaster Hall and the Kings Hall with 52 sculptures of kings that ruled the area for hundreds of years. The Museum of the Royal Artillery School in the Alcazar contains documents, scale models, weapons and uniforms from the 18th and 19th centuries. At the base of the castle and along exterior of the city walls there is a network of connected gardens and wooded areas.

The Monastery of Santa Maria del Parral and the Church of Vera Cruz.

View from the Alcazar

From the Alcazar’s Tower of John II, you will have a great view of the surrounding area’s rolling hills, churches and monasteries. You can’t miss the impressive 15th century Monastery of Santa Maria del Parral that was founded by Henry IV of Spain. The monastery’s church was built in gothic style, while the later built bell tower has a Romanesque top. The monastery, currently owned by the Order of St. Jerome, has four interesting cloisters in built in various architectural styles.

Looking to the left from the monastery, we see the tower of the Romaesque Church of San Marcos at the bottom of a winding road. As we look up along the road, we will see the larger Convent of San Juan de la Cruz on the left and the unique Church of Vera Cruz on the right. The Church of the Vera Cruz was founded by the Knights of the Order of the Holy Sepulchre of Jerusalem in 1208. The Romanesque style church was built in the shape of a twelve-sided polygon with three semi-circular chapels. The design of the church was inspired by the Holy Sepulchre in Jerusalem that the order was named after.

El Sitio restaurant, sucking pig, patatas bravas, tapas and sangria.

Dinner

Segovia is a great place to enjoy traditional Spanish cuisine and in restaurants with matching architecture and atmosphere. The local specialities include roasted suckling pig (cochinillo), suckling lamb (lechazo), Cantimpalos chorizos, wild mushrooms and a traditional layer cake named Ponche Segoviano.

One of the best places to enjoy a meal in Segovia is near the aqueduct. We have already mentioned the famous Candido restaurant and dinner upstairs with a view of the illuminated aqueduct as a backdrop is a memorable experience.

On the Calle De Cevantes, not far from the aqueduct, there are two more great restaurants serving traditional dishes. The Conde Duque, one of the oldest restaurants in Segovia, has a unique interior while the Asador El Bernardino has a terrace with a great view.

On the Plaza Mayor, we wrote about enjoying a drink and people watching at La Concepción. Near the square we have three recommendations. El Figon de los Comuneros is a great place for sampling local tapas. At El Sitio you can have a nice traditional meal or try their pinchos in the bar area. The Restaurante Jose Maria has excellent wines, a tasting menu and a nice selection of tapas at the bar.

After dinner at any of these restaurants, you may want to take a walk of the historic centre with all the town’s monuments lit up.

Let’s Go To Segovia

Segovia is a great place to visit at any time of year, and you can easily spend a couple of days exploring the town’s historic buildings, walls, churches, monuments, narrow streets, shops, museums, bars, cafes and restaurants. The town is also known for two special religious events, the Holy Easter Week (Semana Santa) and the Three Kings parade (los Reyes Magos) held on January 5th.

Segovia is well worth the journey from the hustle and bustle of Madrid and is one of my favourite destinations in Spain. If you get a chance to visit the town, I think you will agree.

 

 

Explore Europe With Us

Azorcan Global Sport, School and Sightseeing Tours have taken thousands to Europe on their custom group tours since 1994. Visit azorcan.net to see all our custom tour possibilities for your group of 26 or more. Individuals can join our “open” signature sport, sightseeing and sport fan tours including our popular Canada hockey fan tours to the World Juniors.

At azorcan.net/media you can read our newsletters, listen to our podcasts and view maps related tour all of our “My European Favourites” stories.

 Images compliments of Paul Almeida and Azorcan Tours.

Read more of Paul’s stories on Todayville.

Before Post

I have been in sports management and the sports tour business since 1994 when I created my company, Azorcan Global Sport, School and Sightseeing tours. Please visit our website at azorcan.net for more information on our company, our tours and our destinations. We are European group tour experts specializing in custom sightseeing tours, sport tours (hockey, soccer, ringette, school academies) and fan tours (World Juniors). Check out our newsletters, and listen to our podcasts at azorcan.net/media.

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DOGE discovered $330M in Small Business loans awarded to children under 11

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Quick Hit:

In a bombshell revelation at a White House cabinet meeting, Elon Musk announced that the Department of Government Efficiency (DOGE) had uncovered over $330 million in Small Business Administration (SBA) loans issued to children under the age of 11.

Key Details:

  • Elon Musk stated that DOGE found $330 million in SBA loans given to individuals under the age of 11.
  • The youngest recipient was reportedly just nine months old, receiving a $100,000 loan.
  • SBA has now paused the direct loan process for individuals under 18 and over 120 years old.

Diving Deeper:

At a cabinet meeting held Monday at the White House, President Donald Trump and Elon Musk detailed a staggering example of federal waste  uncovered by the newly-formed Department of Government Efficiency. Speaking directly to ongoing efforts to eliminate corruption and abuse in federal agencies, Musk explained that the SBA had awarded hundreds of millions in loans to children—some of whom were still in diapers.

“A case of fraud was with the Small Business Administration, where they were handing out loans — $330 million worth of loans to people under the age of 11,” Musk said. “I think the youngest, Kelly, was a nine-month year old who got a $100,000 loan. That’s a very precocious baby we’re talking about here.”

DOGE’s findings forced the SBA to abruptly change its loan procedures. In a post on X, the department revealed it would now require applicants to include their date of birth and was halting direct loans to those under 18 and above 120 years old. Musk commented sarcastically: “No more loans to babies or people too old to be alive.”

The discovery was just the latest in a series of contract cancellations and fraud crackdowns led by DOGE. According to Breitbart News, DOGE recently canceled 105 contracts totaling $935 million in potential taxpayer liabilities. The agency’s website currently lists over 6,600 terminated contracts, accounting for $20 billion in savings.

The president praised Musk and DOGE for rooting out government inefficiencies, noting his administration was focused on “cutting” people and programs that were not working or delivering results. “We’re not going to let people collect paychecks or taxpayer funds without doing their jobs,” Trump said.

Also during the cabinet session, USDA Secretary Brooke Rollins revealed her department had eliminated a $300,000 program aimed at teaching “food justice” to transgender and queer farmers in San Francisco. “I’m not even sure what that means,” Rollins said, “but apparently the last administration wanted to put our taxpayer dollars towards that.”

These revelations highlight what many conservatives have long suspected—that during prior administrations, including under President Joe Biden, massive amounts of federal funding were funneled into unserious, ideologically-driven projects and mismanaged government programs. Under the Trump administration’s second term, DOGE appears to be living up to its mission: trimming fat, exposing fraud, and putting American taxpayers first.

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Why a domestic economy upgrade trumps diversification

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Macdonald-Laurier Institute

From the Macdonald Laurier Institute

By Stephan Nagy for Inside Policy

The path to Canadian prosperity lies not in economic decoupling from the US but in strategic modernization within the North American context.

President Donald Trump’s ongoing tariff threats against Canadian exports has sent shockwaves through Ottawa’s political establishment. As businesses from Windsor to Vancouver brace for potential economic fallout, a fundamental question has emerged: Should Canada diversify away from its overwhelming economic dependence on the United States, or should it instead use this moment to modernize and upgrade its economic hard and software within the North American context? The evidence overwhelmingly supports the latter approach in which Canada reduces interprovincial trade barriers and regulations, builds infrastructure to move energy and other resources within Canada, and invests in Canadian human capital and relationships with the US to maximize synergies, stakeholder buy-in and mutual benefit.

The knee-jerk reaction to blame Trump’s economic nationalism misses a crucial point: America’s retreat from championing global free trade began well before his unorthodox political ascendance in 2016. The Obama administration’s signature Trans-Pacific Partnership (TPP) faced mounting bipartisan skepticism before Trump withdrew from it in 2017. Hillary Clinton, during her presidential campaign, explicitly stated she would oppose the deal, reversing her earlier support. “I will stop any trade deal that kills jobs or holds down wages, including the Trans-Pacific Partnership,” Clinton declared during a campaign speech in Michigan in August 2016.

When President Joe Biden took office, rather than resurrect the TPP, his administration proposed the Indo-Pacific Economic Framework (IPEF). Unlike traditional trade agreements, the IPEF conspicuously omitted market access provisions while emphasizing supply chain resilience and environmental standards. During the IPEF ministerial meeting in Los Angeles in September 2022, U.S. Trade Representative Katherine Tai specifically noted that the framework “moves beyond the traditional model” of free trade agreements.

These policy evolutions reflect a deeper transformation in American economic thinking: a bipartisan consensus has emerged around industrial policy aimed at rebuilding domestic manufacturing, securing critical supply chains, and maintaining technological leadership against authoritarian competitors such as China.

Prime Minister Justin Trudeau and his Cabinet fundamentally misunderstood these shifts, leading to a series of diplomatic missteps that have damaged Canada-US relations. Most damaging has been a pattern of public rhetoric dismissive of both Trump personally and his MAGA supporters more broadly.

In June 2018, following the G7 summit in Charlevoix, Quebec, Trudeau declared in a press conference that Canada “will not be pushed around” by the United States, characterizing Trump’s tariffs as “insulting.” This prompted Trump to withdraw his endorsement of the summit’s joint statement and label Trudeau as “very dishonest and weak” on Twitter.

Former Deputy Prime Minister Chrystia Freeland repeatedly aligned the MAGA movement with authoritarianism. In an August 2022 speech at the Brookings Institution, she characterized Trump supporters as part of a global “anti-democratic movement.” In October 2023, she went further, drawing parallels between MAGA and authoritarian regimes like Russia and China. These statements resonate poorly with nearly half of American voters who supported Trump in recent elections and are borderline disinformation with such exaggerated mischaracterizations of American voters.

Former Foreign Affairs Minister François-Philippe Champagne was caught on camera in December 2022 referring to Trump’s policies as “deranged” while speaking with European counterparts. The video, which social media users circulated widely, further inflamed tensions between the administrations.

Such diplomatic indiscretions might be dismissed as political theatre if they didn’t coincide with concrete policy failures. The Trudeau government neglected critical infrastructure projects that would have strengthened North American economic integration while reducing Canada’s vulnerability to U.S. policy shifts.

To illustrate, Japan and Germany approached Canada to secure liquefied natural gas (LNG) exports as part of their efforts to reduce reliance on Russian energy supplies. Japan expressed high expectations for Canadian LNG during Prime Minister Fumio Kishida’s visit, while Germany explored LNG opportunities during Chancellor Olaf Scholz’s visit, emphasizing the urgency of diversifying energy sources due to geopolitical tensions. However, Trudeau rejected these requests, citing a weak business case for LNG exports from Canada’s East Coast due to logistical challenges and lack of infrastructure. Instead, Trudeau shifted focus to clean energy initiatives and critical minerals, reflecting Canada’s evolving industrial policy priorities.

The economic relationship between Canada and the US represents perhaps the most thoroughly integrated bilateral commercial partnership in the world. The statistics alone tell a compelling story: daily two-way trade exceeds $3 billion, supporting approximately 2.7 million Canadian jobs – roughly one-in-six workers in the country.

This integration manifests in countless ways across industries.

For example, in automotive manufacturing, a single vehicle assembled in Ontario typically crosses the Canada-US border seven times during production. A Honda Civic assembled in Alliston, Ontario, contains components from both countries, with engines from Ohio and transmissions from Georgia integrated with Canadian-made bodies and electronics.

The energy infrastructure between the two nations functions essentially as a single system. The North American power grid delivers Canadian hydroelectricity to major US markets, while Canadian refineries process crude oil from both countries. TransCanada’s natural gas pipeline network serves both markets seamlessly, with approximately 3.2 trillion cubic feet flowing between the countries annually.

In aerospace, Bombardier’s commercial aircraft division collaborates with American suppliers like Pratt & Whitney and Collins Aerospace, creating integrated supply chains that span the border. Montreal’s aerospace cluster works in close coordination with counterparts in Seattle and Wichita.

Beyond traditional industries, American-Canadian technological collaboration has accelerated in recent years. For example, the Vector Institute in Toronto has established formal research partnerships with MIT’s Computer Science and Artificial Intelligence Laboratory, collaborating on foundational AI research. Their joint papers on neural network optimization have been cited more than 3,000 times since 2020.

Quantum computing initiatives at the University of Waterloo’s Institute for Quantum Computing maintain ongoing research exchanges with Google’s quantum computing team in Santa Barbara, California. Their shared work on quantum error correction protocols has advanced the field significantly.

In clean technology, Hydro-Québec’s energy storage division and Massachusetts-based Form Energy announced in 2023 a $240 million joint venture developing grid-scale iron-air batteries to enable renewable energy deployment across North America.

The SCALE.AI supercluster, headquartered in Montreal, includes American tech giants like Microsoft, Amazon, and IBM collaborating with Canadian start-ups on supply chain optimization technologies.

Against this backdrop of deep integration, calls for Canada to diversify away from the US toward markets like China reflect wishful thinking rather than economic realityDezan Shira & Associates in its China Briefing advocated expanding commercial ties with Beijing despite China’s documented history of economic coercion toward Canada.

This recommendation ignores the painful lessons of recent history. The arbitrary detention of Michael Kovrig and Michael Spavor for over 1,000 days in Chinese prisons, the imposition of punitive restrictions on Canadian agricultural exports following the arrest of Huawei executive Meng Wanzhou, and documented interference in Canadian domestic politics all demonstrate the risks of economic dependence on China.

The CD Howe Institute’s March 2025 analysis cites the overwhelming preponderance of trade flows: 76 per cent of Canadian exports go to the United States, compared to just 3.7 per cent to China, 2.4 per cent to the UK, and 2.32 per cent to Japan. As the report notes, “Given geographic proximity, linguistic compatibility, and complementary regulatory frameworks, any significant trade diversification away from the United States would require decades of sustained effort and acceptance of considerably higher transaction costs.”

Rather than pursuing illusory diversification, Canada should focus on strategic economic modernization that positions it as an indispensable partner in America’s industrial revitalization.

First, Canada must dismantle internal trade barriers that fragment its domestic market. The Canadian Federation of Independent Business estimates these interprovincial trade barriers cost the economy $130 billion annually – nearly 7 per cent of GDP. Harmonizing regulations and procurement practices would create a more efficient national market better positioned to integrate with the US economy.

Second, Canada should leverage its critical mineral resources – including lithium, cobalt, and rare earth elements – as strategic assets for North American supply chain security. The Minerals Security Partnership launched in 2022 provides a framework for such co-operation, but Canada has yet to fully capitalize on its geological advantages.

Third, Ottawa should accelerate east-west energy infrastructure development to enhance continental energy security. The proposed Energy East pipeline, which would have transported Western Canadian crude to Eastern refineries, fell victim to regulatory hurdles in 2017. Reviving such projects would reduce Eastern Canada’s dependence on imported oil while creating more resilient North American energy networks.

Finally, Canada should position itself as a key contributor to emerging technology initiatives. Trump’s proposed $500 billion AI infrastructure investment represents an opportunity for Canadian AI researchers and companies to integrate more deeply into US innovation ecosystems.

The path to Canadian prosperity lies not in economic decoupling from the US but in strategic modernization within the North American context. The integrated nature of the two economies – built over generations through geographic proximity, shared values, and complementary capabilities – represents a competitive advantage too valuable to abandon.

As American industrial policy evolves to address 21st-century challenges, Canada faces a choice: it can either adapt its economic framework to remain an essential partner in this transformation or risk marginalization through misguided diversification efforts. The evidence overwhelmingly supports the former approach.

For Canada, the answer is smarter, not less, North American integration.


Dr. Stephen Nagy is as a professor at the International Christian University, Tokyo and a senior fellow at the Macdonald-Laurier Institute. Concurrently, he is a visiting fellow with the Japan Institute for International Affairs (JIIA). He serves as the director of policy studies for the Yokosuka Council of Asia Pacific Studies (YCAPS), spearheading their Indo-Pacific Policy Dialogue series. He is currently working on middle-power approaches to great-power competition in the Indo-Pacific.

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