Canada’s prime minister says the US does not get to dictate terms for a trade agreement
VANCOUVER, British Columbia — VANCOUVER, British Columbia (AP) — Canadian Prime Minister Mark Carney said Wednesday that Washington cannot dictate the terms of a continental trade deal known as the United States-Mexico-Canada Agreement, or USMCA, speaking out about obstacles ahead of the agreement’s July review.
The agreement, which dates back to the early 1990s, linked the economies of the three North American countries but has faced difficulties due to the ever-changing tariff policies of US President Donald Trump.
Speaking to reporters in Ottawa, Carney said finalizing the latest version of the deal “will take some time.”
“We understand what some Americans call trade irritants or trade problems,” Carney said. Trade irritants are policies that create friction and disputes in international trade.
“We also have some on our side,” he added. “We will sit down and work on these issues by taking a broader approach in the negotiations.”
“It’s not about the United States dictating the terms. We have the negotiations. We can achieve a mutually positive outcome,” Carney also said. “It will take time.”
Carney’s comments come after Radio-Canada, the French-language service of the Canadian Broadcasting Corporation, reported that U.S. officials were imposing “free entry” into trade talks with Canada and demanding concessions before negotiations begin.
In any denial, “people are asking for concessions,” Carney said when asked about the radio report. “We have strengths, we have options. We are diversifying our options.”
Last week, U.S. Commerce Secretary Howard Lutnick attacked Canada’s approach to trade negotiations, saying Canada relies on the U.S. economy and that it was “outrageous” for Canadian provinces to keep American alcoholic beverages off their shelves.
He also criticized Carney for striking a deal with China to reduce its tariffs from 100% on Chinese-made electric vehicles to 6.1%, with an annual cap of 49,000 vehicles. In return, China should lower retaliatory tariffs on Canadian agricultural products.
A recent report from the Office of the United States Trade Representative cites as trade irritants the refusal of some Canadian provinces to stock American alcohol and high tariffs on some American dairy products.
Carney promised to protect Canadian production of dairy, poultry and eggs during free trade negotiations with the United States.
The United States also opposes the “Buy Canadian” policy, which prioritizes Canadian products and workers on projects worth more than 25 million Canadian dollars, or about $18 million.
Carney was asked if it was unacceptable that the United States had yet to put anything on the negotiating table.
In a 10-minute video he released Sunday, Carney said strong economic ties between Canada and the United States were once a strength, but are now a weakness that must be addressed. He said Trump’s tariffs had affected workers in the auto and steel industries.
He also spoke about his government’s efforts to strengthen the Canadian economy by attracting new investments and signing trade agreements with other countries.
