Prime Minister Mark Carney recently addressed expectations surrounding a potential trade agreement between Canada and the U.S. He stated that a near-term deal to resolve tariffs imposed by President Donald Trump on steel, aluminum, automobiles, and other sectors is unlikely. Instead, these issues will be incorporated into a broader review of the U.S.-Mexico-Canada Agreement (USMCA).
Insights from Carney on USMCA Negotiations
During a press conference in Ottawa, Carney emphasized that the list of priorities released by the U.S. this week represents only a fraction of the larger discussions to come. He anticipates more demands from the U.S. in upcoming negotiations. Despite closing in on a deal with the Trump administration in October, talks were halted when President Trump withdrew from discussions.
Current Status of Trade Talks
Carney expressed confidence in negotiating a sector-focused deal if the U.S. administration is willing to engage. He remarked, “If the U.S. wanted to sit down this weekend, we could sit down this weekend and hammer out a sectoral deal.” However, he remains skeptical about the likelihood of such discussions taking place soon, as these matters will align with the ongoing review of the USMCA.
Key Issues in USMCA Review
- Tariffs on steel and aluminum
- Dairy trade concerns
- Canada’s Online Streaming Act
- Provincial procurement practices favoring local companies
- Restrictions on U.S. liquor imports in response to tariffs
- Regulation of electricity trade from Montana to Alberta
Carney’s recent discussions involve establishing broader parameters for the USMCA negotiations, which he set with U.S. President Trump and Mexican President Claudia Sheinbaum during a recent meeting at the FIFA World Cup draw. Despite the challenges ahead, he confirmed intentions to revisit key topics.
Next Steps
The formal review of the USMCA is scheduled for July 1, 2024. Until progress is made in negotiations, Ontario Premier Doug Ford has asserted confidence in Carney’s ability to finalize a beneficial trade agreement. He commented on a temporary ban of U.S. alcohol products from Ontario liquor stores until an appropriate deal is reached.
As both nations prepare to navigate the complexities of the USMCA negotiations, the focus will continue to be on balancing trade advantages and addressing long-standing disputes.
