The U.S. does not dictate the terms of free trade with Canada, Prime Minister Mark Carney told reporters Wednesday morning.
Responding to questions about ongoing Canada-United States-Mexico Agreement negotiations with the Americans, Carney said the Canadian delegation is aware of what the U.S. “would call trade irritants,” and that “we have some on our side as well.”
“We’re well prepared around those issues. We will sit down and work through those issues with the broader approach in negotiations. We’ve made counter-proposals, of which they’re aware,” he said, without providing further detail. “And the time will come to really roll up our sleeves.”
Earlier this month, the U.S. compiled a list of sticking points on trade with Canada noting widespread embargoes on American liquor sales, Canada’s agenda to reduce plastic waste, and dairy products.
It also noted procurement rules in Ontario, Quebec and British Columbia that effectively exclude bids from U.S. firms.
U.S. Commerce Secretary Howard Lutnick referenced those pain points during a Senate committee hearing in Washington on Wednesday.
A fiery exchange
Lutnick’s problems with Canadian trade came up during a fiery exchange with Democratic Sen. Jeanne Shaheen from New Hampshire, who grilled the secretary on Canadian tourism to her state.
She said cross-border tourism dipped 30 per cent last year, “largely due to the loss of trust and goodwill because of this administration’s rhetoric around Canada.” She also referenced Lutnick’s recent “they suck” remark on Canada’s trade agreement with China.
“We have all those Canadian visitors who are not coming because of your comments and comments by the administration. How does that help our economy?” she asked.
“It is outrageous that Canada will not put U.S. spirits on the shelf,” responded Lutnick, who called the move “insulting and disrespectful to America.”
Later in the hearing, Democratic Sen. Kirsten Gillibrand of New York asked Lutnick for his take on the effect tariffs have on small American businesses which may, despite producing goods in the U.S., pay import fees on components. She cited Canadian lumber as an example of a product that is used widely in U.S. manufacturing.
“Canada has the benefit of USMCA [the American term for CUSMA], they have the best tariff deal in the world. They just treat us unfairly at every margin that they can,” Lutnick said.
“The answer is: make your products at home and you will have no tariff.”
New advisers on ‘two-way street’
On Tuesday, Carney unveiled a new advisory team ahead of formal trade talks this summer.
The council is made up of some members from the previous team while adding former Conservative leader Erin O’Toole, former Conservative cabinet minister Lisa Raitt, former premiers P.J. Akeeagok and Jean Charest, as well as former Canadian High Commissioner to the United Kingdom Ralph Goodale.
U.S.-Canada Trade Minister Dominic LeBlanc will chair the council. In an interview with CTV Power Play host Vassy Kapelos on Tuesday, he called it a “forum for us to receive advice and input” from politicians representing various sectors in Canada’s economy.
“They will have, also, a chance to speak to American business leaders and their counterparts, so it’s very much a two-way street.”
‘We were very close’: LeBLanc
Kapelos asked LeBlanc to respond to a remark from the U.S. ambassador to Canada, who said on a podcast last week that there have been no serious negotiations between the two countries since last year.
LeBlanc pushed back, saying “it’s true that in October of last year we thought we were very close to an agreement that would have brought significant relief to particularly the steel and aluminum sectors,” and pointed to an “interesting offer on energy.”
Carney and U.S. President Donald Trump agreed at the time that automotive and softwood lumber trade would be next on the list, he said.
“The president said it publicly, he told his negotiators to stop those conversations with Canada because he was upset about an ad that the Ontario government was running during the World Series.”
Talks with Lutnick and U.S. Trade Representative Jamieson Greer resumed in the new year, he added.
