Carney says Canada will not accept U.S. trade deal without viable auto sector

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

"This government will not settle for a deal with the United States that is not consistent with a viable Canadian auto sector," Carney said Saturday in Manila.

Carney made the remarks at a news conference, three months after Canada pulled out of trade talks with the U.S. over last-minute demands from Washington that included a hit to Canada’s auto sector. He described the auto sector as one of the fundamental issues in the trade negotiation and one of the most challenging issues in the talks.

U.S. call and continental industry

Carney said he had "quite a long, substantive conversation" this week with U.S. President Donald Trump. U.S. Trade Representative Jamieson Greer and Trump’s chief of staff Stephen Miller were on the line.

He said the American automotive market relies in part on Canadian manufacturing, and the continental industry is challenged by the speed of production and by electrification.

"The sooner that we can get to a stable trading relationship under the new trade policy of the United States for the auto sector, it’s absolutely in the interest of course of Canadian workers, Canadian auto sector, but very much the U.S. as well," he said.

Chinese investment and Stellantis

Carney said Chinese investment in Canada’s auto sector is restricted to a set timeline and amount of vehicles, and will be reassessed based on multiple factors including the state of Canada’s integration into the U.S. automotive sector.

He also reiterated that Ottawa feels automaker Stellantis has not met obligations it took when accepting federal funds as it signed a deal to sell its Brampton, Ont., assembly plant to defence contractor Roshel.

"We’re not satisfied in any way with the current situation and the partial approach that Stellantis has taken here," Carney said.

"The expectation is that Stellantis fully respects its engagements to the workers and to Canada."

Why it matters

The auto sector is a central issue in Canada-U.S. trade negotiations, and Canada has said it will not sign a deal that does not preserve a viable Canadian auto sector.

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Sources

• globalnews.ca: Canada-U.S. trade deal must include viable auto sector, Carney says - National | Globalnews.ca
• thestar.com: Carney says Canada-U.S. trade deal must include viable auto sector

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.