Carney says Canada-US trade talks progress, auto sector remains condition

Canadian Prime Minister Mark Carney said Saturday that trade talks with the United States are making progress, but Ottawa will not sign a deal that does not allow for a viable Canadian auto sector.

Speaking to reporters in Manila, Philippines, Carney said he had “quite a long, substantive conversation” with U.S. President Donald Trump earlier in the week. U.S. Trade Representative Jamieson Greer and Trump’s chief of staff Stephen Miller also participated in the call.

“We are making progress. There is the possibility of a deal, a bilateral deal. But we’re not yet there,” Carney said.

Carney said Canada suspended trade negotiations in August after last-minute U.S. demands that Ottawa considered unacceptable, including demands that would hit Canada’s auto sector. Washington subsequently imposed 50% tariffs on about $20 billion in Canadian goods, prompting retaliatory Canadian tariffs in September. The countries have since resumed discussions.

“This government will not settle for a deal with the United States that is not consistent with a viable Canadian auto sector,” Carney said. He described the auto sector as “one of the fundamental issues” in the negotiation and “one of the most challenging issues.”

Carney said the American automotive market relies in part on Canadian manufacturing, and the continental industry is challenged by speed of production and by electrification. He said a stable trading relationship for the auto sector is in the interest of Canadian workers and the U.S. as well.

Carney also said Ottawa is not satisfied with automaker Stellantis’s approach to obligations it took when accepting federal funds as it signed a deal to sell its Brampton, Ont., assembly plant to defence contractor Roshel. “The expectation is that Stellantis fully respects its engagements to the workers and to Canada,” he said.

Separately, Carney announced that Canada had substantially concluded free-trade negotiations with the Association of Southeast Asian Nations and completed separate negotiations with the Philippines. The Canadian government estimates the ASEAN agreement could add nearly 2 billion Canadian dollars (US$1.4 billion) to Canada’s economy and create almost 14,000 jobs. The Philippines agreement covers more than 90% of tariff lines, and Carney said trade between the two countries could triple by 2035.

Sources

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