Canada, U.S. make progress in trade talks but key issues remain, Carney says
The prime minister said some Canadian red lines, including on culture and sovereignty, have been taken off the negotiating table.
Prime Minister Mark Carney says Canada and the United States have made progress on reaching a trade deal, but more work is needed before any agreement is finalized. Carney said some of Canada's red lines have been taken off the table, including protections for the French language and culture and Canada's sovereign ability to strike trade deals with other nations. He attributed the shift to a change in the White House's position. The prime minister said more intense negotiations have begun after talks collapsed dramatically in August.
"They're asking less and they're offering more, but we're not quite there," Carney said of the state of negotiations while speaking to reporters on the sidelines of a Commonwealth leaders' meeting in Antigua and Barbuda on Tuesday. "Those are now off the table. That's very welcome," he added, referring to the U.S. dropping its objections to Canada's cultural policies and its push to restrict Ottawa's ability to make other trade deals. Carney said the process of more intense negotiations has begun following his call with U.S. President Donald Trump last weekend. Nosy Mag reported on November 2 that the leaders spoke and ordered their teams to resume formal negotiations.
Carney called off formal trade talks in August at the last minute as the two sides worked to finalize a deal before a new round of U.S. tariffs was imposed on nearly $28 billion worth of Canadian goods. At the time, he said the U.S. was offering a bad deal that asked too much and offered too little. He gave three main reasons for walking away, including the U.S. refusal to extend tariff relief to medium and heavy duty trucks, which he said would have affected General Motors and Ford plants in Ontario. The other two issues were U.S. objections to rules ensuring French language content is easy to find on streaming platforms and language that Ottawa believed could have restricted Canada's ability to make other trade deals.
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The prime minister did not outline what specific issues remain on the table now, but autos are expected to be a key sticking point, as they were in August. One of Ottawa's chief goals is to get the U.S. to reduce protectionist tariffs on Canadian made steel, aluminum, autos and softwood lumber. Carney said there are still other important issues that need to see progress. "Some significant issues remain. Further negotiations are required," he said. He added that it is not always necessary for negotiators to travel formally to Washington, as good lines of communication are open and progress is being made.
The progress comes as Trump's Republican Party faces what could be a tough showing in Tuesday's U.S. midterm elections. Pollsters have been expecting a blue wave as American voters voice frustrations about the cost of living, driven in part by the war in Iran and tariffs. Trump has been under pressure to address affordability concerns. In an interview Tuesday morning, Trump told Fox News that his administration was nearing a trade agreement with Canada. Carney said he will meet Trump in China later this month at the APEC summit.
With files from The Canadian Press, CBC News and Global News