Carney Says US Not Dictating Terms of Trade Negotiations

 

Prime Minister Mark Carney says the United States will not be dictating terms of the Canada-United States-Mexico Agreement (CUSMA) in upcoming negotiations, following reports that Washington has asked Ottawa for concessions before talks officially begin.

When asked by reporters in Ottawa if Canada would make any concessions before coming to the table, Carney responded, “No.”

“It’s not a case of the United States dictating the terms. We have the negotiations, we can come to a mutually successful outcome. It will take some time,” he told reporters on April 22.

Carney’s comments come after Radio-Canada reported on April 22 that the United States is demanding concessions before negotiations with Canada start. The report, citing unnamed sources, refers to the concession as an “entry fee” to begin trade talks.

The prime minister added that while the United States is concerned with “trade irritants,” the two sides will work through them as part of the broader CUSMA talks. “We have some on our side as well,” he said, adding that Ottawa has made some counter-proposals.

While Mexico began formal talks with the United States on CUSMA last month, and the two countries are set to begin official bilateral negotiations in May, Canada and the United States have yet to announce an official start date for negotiations.

Canada’s chief trade negotiator to the United States, Janice Charette, said on April 21 that it would not be possible to resolve all trade points by July 1—the date set for the countries to review CUSMA. She said Ottawa is focused on “getting a comprehensive solution, not necessarily a fast solution.”

Charette added that Ottawa believes CUSMA is a “strong agreement” and that there is no need to change its fundamentals.

“It’s really the framework that underpins this marketplace, which is the envy of the world,” she said on April 21 at a panel organized by the Canadian Chamber of Commerce ​in Ottawa.

U.S. Trade Representative Jamieson Greer testified before the U.S. House Ways and Means Committee on April 22 that there was a gap between the trade philosophies of Ottawa and Washington.

Greer said Canada was “doubling down on globalization” by attempting to diversify its trade, while the United States was trying to “correct for the problems of globalization.”

When asked if Canada was taking the same steps as Mexico to better align with Washington’s trade policy, Greer said Canada had “done this, but overall they’ve indicated that they want to be trading more, they want to have more trade agreements with more countries.”

U.S. Commerce Secretary Howard Lutnick said at a conference on April 17 that U.S. President Donald Trump thinks CUSMA (USMCA) is a “bad deal.” 

Lutnick said the deal should be “reconsidered and reimagined correctly.”