Prime Minister Mark Carney has announced that Canada will engage in formal discussions with the United States starting in January to reassess their free trade agreement. In a statement released by the Prime Minister’s Office on Thursday, it was revealed that Internal Trade Minister Dominic LeBlanc will convene with American counterparts to delve into the Canada-U.S.-Mexico trade pact. The government has also expressed its intention to pursue additional trade agreements in the upcoming year.
The decision to initiate these discussions follows a meeting between Carney and provincial leaders where updates on trade negotiations with the U.S. were shared. Carney emphasized that trade issues raised by the U.S. are part of a broader conversation about continental trade and stressed the significant advantages for both Canada and the U.S. if they collaborate in key economic sectors.
The review of the Canada-U.S.-Mexico trade deal, known as CUSMA, will focus on addressing concerns regarding Canadian policies on dairy products, alcohol, and digital services, according to Washington’s trade representative. U.S. Trade Representative Jamieson Greer highlighted worries about access to Canada’s dairy market, exports of certain dairy products, and the impact of Canadian regulations on digital service providers.
Furthermore, Greer raised concerns about the effects of the Online Streaming Act and Online News Act on U.S. digital service providers, as well as procurement measures in specific Canadian provinces. The U.S. also cited issues related to its trade with Mexico concerning supply chains, energy policies, and labor and environmental laws. Greer indicated that his office will engage with Canada and Mexico to address these issues bilaterally or trilaterally.
Carney reiterated Canada’s commitment to safeguarding its agricultural supply management system during a news conference in Ottawa, emphasizing the potential benefits of collaboration between Canada and the U.S. in sectors like auto, steel, aluminum, and forest products. The Prime Minister expressed hope for tariff relief talks to resume and stated that Canada is prepared to reach an agreement with the U.S. on forest products to address affordability challenges, particularly in the housing sector.
The discussions between Canada and the U.S. come after previous tensions, including trade talks halted by Trump over an anti-tariff ad and concerns raised by the White House regarding the flow of fentanyl and irregular migrants. Carney aims to establish a new economic and security partnership with Washington following the Liberals’ election victory. Ford, the Ontario Premier, defended the anti-tariff ad as effective and reiterated Canada’s readiness to engage in trade negotiations with the U.S. across various sectors.