The solution is to simply not "negotiate" with terrorists. Just make decisions that financially damage them and their cronies, while forming close relationships with non-terrorist states.

Not just effort. Negotiating trade agreements with the states have always involved giving concessions that mean enacting legislation that deliberately hurts Canadian industries and/or consumers in return for low cost access to their markets. If they are going to be unreliable, we should not be hurting ourselves in hopes that they will play by their own rules.