Carney Says Canada, US to Work Toward Trade Deal in Coming Weeks After Call With Trump

Canada and the United States will spend the coming weeks working toward a trade agreement after Prime Minister Mark Carney held what he described as a constructive call with US President Donald Trump on Sunday, The Associated Press reported, just two days before the US midterm elections.

Carney said in a social media post that the conversation built on recent discussions about the outlines of a deal that would create jobs, lower costs for families and protect Canada’s languages, culture and sovereignty. “Our teams will now be working in the coming weeks to deliver that outcome,” he wrote, according to AP.

Global News said Carney described the potential agreement as “mutually beneficial”, adding that the call followed constructive talks on its outlines. Trump had not commented on the call as of Sunday, Global News reported.

Talks back on track after August breakdown

The upbeat tone marks a shift from August, when Canada walked away from negotiations. AP said Carney rejected US demands he said threatened Canadian sovereignty, French-language protections and the auto industry. Global News said Carney had pointed to a last-minute US push for wording that would limit Canada’s ability to strike trade deals with other countries.

Trump then imposed 50% tariffs on roughly US$20 billion of Canadian goods, according to AP, and Canada answered with dollar-for-dollar retaliatory duties, Global News reported.

Talks have since resumed, though AP described progress as uneven. Last week Carney said negotiations had intensified slightly and that any movement was because Washington was coming closer to Canada’s position. The two sides have discussed possible relief from US tariffs on Canadian steel and cars, but no details of a deal have been announced, AP said.

At a campaign rally in South Carolina on Thursday, Trump said Canada had been “treating us extremely nicely recently” and suggested his tariffs had improved relations, Global News reported.

Tariffs a midterm issue

The trade dispute has become an issue in the November 3 midterms, particularly in Michigan and Maine, where Republican candidates have faced pressure over tariffs hurting local businesses, AP said. Michigan Republican Senate candidate Mike Rogers has called for an end to the tariff war.

Meanwhile, Canada and the European Union launched a new economic and security alliance on Friday, as Carney pursues a goal of doubling Canadian exports outside the US over the next decade, according to AP.

What’s next

Negotiators are set to work over the coming weeks, with no deadline announced. Global News said Carney’s post suggests an agreement will not be reached before Tuesday’s vote; on Wednesday he had said Canada was not yet in a position to conclude a deal. Ottawa is also due to release its federal budget on Thursday.

#businessnews