Washington (United States) (AFP) – US and Canadian negotiators raced against the clock Friday to reach a trade deal before a midnight deadline when punishing new US tariffs are set to kick in. In the latest salvo amid months of trade hostility, US President Donald Trump threatened to impose new 50-percent duties on a range of Canadian products by Wednesday. However, he issued a last-minute delay, citing major progress in trade talks.
Hours before the new deadline, Trump stated the US “should be able to have a deal with Canada,” referencing his “good relationship” with Prime Minister Mark Carney. Canadian negotiators have been camped out in Washington this week trying to finalize a deal that reportedly aims to address a range of flash points. Both sides have indicated that a pact is nearly complete, but talks were ongoing Friday, with top Canadian negotiator Dominic LeBlanc meeting US Trade Representative Jamieson Greer.
Canada is seeking relief from Trump’s tariffs on autos, steel, and aluminum, which have severely affected its economy, led to job losses, and strained what was once an iron-clad trade relationship. Details of the proposed agreement emerged this week after Carney briefed the leaders of Canada’s provinces and territories. US tariffs will likely be reduced in certain areas, but not completely removed, with Saskatchewan’s conservative Premier Scott Moe telling reporters there’s no going back to the pre-Trump “status quo.”
Ryan Majerus, a trade lawyer at King & Spalding, informed AFP that Washington’s apparent willingness to reduce the sector-specific tariffs “dramatically increases the potential of a deal.” “I think both sides want an off-ramp here,” Majerus said, while acknowledging that Ottawa was “under tremendous pressure” to get tariffs removed and that the public may be dissatisfied with the outcome. Canada’s opposition Conservative Party was already on the offensive Friday, with its leader Pierre Poilievre asserting that “one-sided tariffs on Canadian industry would be a bad deal.” “Tell me how the Canadian company is supposed to compete against an American company when only our guy pays the tariff,” Poilievre stated.
– Booze ban –
Canada’s regional leaders reported that the United States has been particularly irked by one retaliatory measure: the removal of US alcohol and wine from liquor stores. Carney on Wednesday asked the provinces to restock US booze. Some publicly agreed, while others expressed hesitation. Quebec Premier Christine Frechette stated she wanted to study the deal before agreeing to anything, and Manitoba’s left-wing Premier Wab Kinew told reporters that Trump appeared “weak” and suggested Canada should “fight.”
Ontario Premier Doug Ford, one of Trump’s most prominent critics during the trade war, has remained silent thus far. Ford controls the Liquor Control Board of Ontario, one of the largest individual purchasers of US alcohol products. Carney has repeatedly informed Canadians that relations with the United States have been irrevocably altered, regardless of the outcome of an individual trade deal. He emphasized that the country needs to diversify and reduce its reliance on the United States, which currently accounts for roughly 70 percent of Canadian exports.
Beyond the ongoing negotiations, the United States and Canada still need to agree on revisions to the North American free trade agreement, USMCA, which Trump declined to renew last month.
© 2024 AFP
