Interview with Ambassador David MacNaughton on diplomacy, dealmaking and the rule of law

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IBA Corporate and M&A Law Committee

Corporate and M&A Law Committee Reception

Art Gallery of Ontario, Toronto
4 November 2025

At the Corporate and M&A Law Committee reception and dinner at the Art Gallery of Ontario, Ambassador David MacNaughton was interviewed by Committee Co-Chairs Nicola Charlston and Bertrand Cardi. He offered pragmatic reflections on diplomacy and negotiation in an era of heightened geopolitical complexity. MacNaughton served as Canada’s Ambassador to the United States from 2016 to 2019, where he played a central role in the renegotiation of the North American trade agreement. He is a veteran public policy leader and business executive with decades of experience advising on cross-border issues and government relations.

Ambassador MacNaughton acknowledged that some traditional international institutions have, in certain cases, become legacy frameworks that no longer match current geopolitical realities. In light of this decline in the relevance of some multilateral institutions, quiet, principled diplomacy has become even more vital. When dealing with highly transactional administrations, a calibrated dose of realpolitik is essential. Concrete examples of such diplomacy include cultivating direct relationships with national business leaders, so that they can themselves convey practical concerns to political principals, and the adoption of negotiating positions that recognise the short-term incentives of actors operating as part of a rapid news cycle and on social media.

His overall message was pragmatic rather than partisan: align solutions with shared economic interests, respect institutional norms and keep communication channels open to secure durable outcomes that serve all of the stakeholders involved.

Key takeaways for M&A professionals and the wider corporate community from complex, high-stakes negotiations:

• during the renegotiation of the North American trade agreement, MacNaughton emphasised the importance of disciplined message control, sustained private sector engagement and a problem-solving posture that focused on tangible mutual benefits rather than rhetoric;
• he also underscored the importance of modern communications and social media, when used responsibly, to support democratic institutions and constructive, fact-based public debate;
• Ambassador MacNaughton also stressed the indispensable role of lawyers and the rule of law in maintaining peaceful, predictable international order; and
• despite the challenges, Ambassador MacNaughton remains cautiously optimistic about the future.