TORONTO (AP) — Canadian Prime Minister Mark Carney said Monday that commercial negotiations with the administration of US President Donald Trump have recovered slightly, but any progress is due to Washington moving closer to Canada’s demands.
Comments arrive eight days before the United States midterm electionsWhite House economic adviser Kevin Hassett suggesting countries are close to an agreement.
“To the extent that progress has been made, it is because the United States is moving closer to where we are,” Carney said.
Commerce Minister Dominic LeBlanc’s office said Canada remains engaged in a “constructive dialogue” with Washington.
Carney described a “slight, slight intensification” of discussions, but said Canada’s negotiating position remained unchanged.
Carney acknowledged he can’t be sure Trump will honor a new trade deal. Asked if the president would “sign in pen” after Carney previously warned that Washington’s signature was sometimes “written in pencil,” he replied, “I don’t know.”
Canada rejected Washington Conditions in August after the countries appeared close to an agreement. Carney said the offer crossed Canadian “red lines.” Trump then imposed 50% tariffs on approximately $20 billion in Canadian goods, causing retaliation and new trade restrictions.
Trump announced Friday that he would lift tariffs of about 50% on Canadian goods while imposing new tariffs on dozens of other products. Two days later, he told a campaign rally in Michigan that Canada was “willing to give us anything right now” and that a deal would be reached “very soon.” He told a Detroit television station that a deal could be reached before the midterm elections, although it could take months.
Trump’s tariffs have become an issue in the closely watched Senate elections. Republican candidate Mike Rogers said in a campaign ad in Michigan that Canada is “not our enemy” and that “we must end this tariff war now.” In Maine, Republican Senator Susan Collins pressed the Trump administration to ease tariffs on Canadian products used by farmers and other businesses, Washington announced exemptions on Friday.
Trump has repeatedly complained about the U.S. trade deficit with Canada, but energy largely explains the gap. The United States buys millions of barrels of Canadian oil daily, usually at a discount, and runs a trade surplus with Canada when energy is excluded.
Trump also wants automakers to move production from Canada to the United States, threatening an industry that has been deeply integrated across the border for decades.
Trump’s trade war and repeated threats against Canada the 51st American state pushed Carney to seek new markets, with the goal of doubling Canadian exports outside the United States over the next decade.
Carney welcomes European Union leaders Thursday and Friday in Montreal to strengthen economic and security ties. The President of the European Commission, Ursula von der Leyen, has proposed making Canada the First associate member of the EUa status that still remains to be defined.
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