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Canada, US to Hold Free Trade Talks Jan12/19 06:01
Canada and the U.S. will launch formal discussions to review their free
trade agreement in mid-January, the office of Canadian Prime Minister Mark
Carney said.
TORONTO (AP) -- Canada and the U.S. will launch formal discussions to review
their free trade agreement in mid-January, the office of Canadian Prime
Minister Mark Carney said.
The prime minister confirmed to provincial leaders that Dominic LeBlanc, the
country's point person for U.S-Canada trade relations, "will meet with U.S.
counterparts in mid-January to launch formal discussions," Carney's office said
in a statement late Thursday.
The United States-Mexico-Canada trade pact, or USMCA, is up for review in
2026. U.S. President Donald Trump negotiated the deal in his first term and
included a clause to possibly renegotiate the deal in 2026.
Carney met with the leaders of Canada's provinces on Thursday to give them
an update on trade talks with the U.S.
Canada is one of the most trade-dependent countries in the world, and more
than 75% of Canada's exports go to the country's southern neighbor. But most
exports to the U.S. are currently exempted by USMCA.
Trump cut off trade talks to reduce tariffs on certain sectors with Carney
in October after the Ontario provincial government ran an anti-tariff
advertisement in the U.S. That followed a spring of acrimony, since abated,
over Trump's insistence that Canada should become the 51st U.S. state.
Carney said earlier Thursday that Canada and the U.S. were close to an
agreement at the time on sectoral tariff relief in multiple areas, including
steel and aluminum. Tariffs are taking a toll on certain sectors of Canada's
economy, particularly aluminum, steel, auto and lumber.
Carney also said trade irritants flagged this week by U.S. Trade
Representative Jamieson Greer are elements of a "much bigger discussion" about
continental trade. Greer said a coming review of the Canada-U.S.-Mexico trade
deal will hinge on resolving U.S. concerns about Canadian policies on dairy
products, alcohol and digital services.
Carney and the provincial premiers agreed to meet in person in Ottawa early
in the new year.
Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion
Canadian (US$2.7 billion) worth of goods and services cross the border each day.
About 60% of U.S. crude oil imports are from Canada, as are 85% of U.S.
electricity imports.
Canada is also the largest foreign supplier of steel, aluminum and uranium
to the U.S. and has 34 critical minerals and metals that the Pentagon is eager
for and investing in for national security.
Carney said U.S. access to Canada's critical ministers is not a certainty.
"It's a potential opportunity for the United States, but it's not an assured
opportunity for the United States. It's part of a bigger discussion in terms of
our trading relationship, because we have other partners around the world, in
Europe for example, who are very interested in participating," Carney said
earlier Thursday.
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