Carney says deal with U.S. on CUSMA 'will take some time'

OTTAWA — Prime Minister Mark Carney said it is not just the United States that sets the negotiation terms for the upcoming review of the Canada-United-States-Mexico-Agreement (CUSMA), but also acknowledged the outcome of those discussions will likely take “some time.”

“It’s not a case of the United States dictates the terms, we have a negotiation, we can come to a mutually successful outcome, it will take some time,” Carney told reporters, on his way into a cabinet meeting on Wednesday morning.

Carney said his government has “multiple levels of contact” with U.S. counterparts and that parties on both sides are working through a series of trade issues.

“We’re well prepared around those issues,” he said. “We will sit down and work through those issues with the broader approach in the negotiation.”

Carney added that his government has made some counter proposals to the Americans.

The prime minister’s comments come one day after Janice Charette, Canada’s chief trade negotiator to the U.S., said she would like to see “mutuality” from Washington in recognition of concessions Canada has already made to address U.S. President Donald Trump’s concerns.

Last June, the federal government removed the digital sales tax on U.S. tech giants and withdrew most of the retaliatory tariffs that were put in place last February.

“So far it’s being pocketed,” said Charette, during a Canadian Chamber of Commerce summit in Ottawa on Tuesday. “And I think it will be important for us to see some mutuality in terms of the negotiating process.”

The existing CUSMA trade pact runs until 2036, but it includes a clause that allows countries to exit with six months’ notice. The deal is set to be reviewed in July 2026. The Mexicans are currently further along in negotiations with the Americans. United States Trade Representative Jamieson Greer was in Mexico City this week and agreed to begin formal bilateral negotiations at the end of May with Mexico.

Charette said on Tuesday that July review deadline “is kind of a checkpoint — it’s not a cliff.” Charette said it will not determine the future of the trade relationship.

Still, negotiations are likely to be contentious. The Americans have a number of trade irritants with Canada, including Canada’s dairy supply management system, a ban on U.S. alcohol in most Canadian provinces and Canada’s policies on digital sovereignty.

Greer signalled in March during an interview with Fox Business, that the U.S. alcohol ban was non-starter for negotiations to begin.

More to come.

National Post

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