Carney says Canada is not close to a U.S. trade deal before midterms

Prime Minister Mark Carney said Wednesday that Canada is not currently in a position to reach a trade deal with the U.S. before next week’s midterm elections. Asked why he was willing to entertain a deal before the vote, and whether the U.S. administration might make Canada a “fall guy” if it loses, Carney said Canada is seeking the right agreement for Canadians that would also serve U.S. interests. If such a deal presents itself, he said, Canada will pursue it, but “we’re not at that position right now.”

Global News reported days earlier that talks between the two countries, which had stalled, were “moving quickly” at the political level, according to multiple sources with direct knowledge of the negotiations. The talks broke down in August. Carney said at the time that the U.S. made a last-minute push for language that would limit Canada’s ability to make trade deals with other countries, water down French-language requirements and hurt Canada’s struggling auto industry. U.S. President Donald Trump then put into effect previously threatened 50 per cent tariffs on a number of Canadian products. Ottawa responded with dollar-for-dollar retaliatory tariffs.

The sources said recent discussions have remained at the political level, with Canada’s Trade Minister Dominic LeBlanc leading the Canadian side. Canada’s lead negotiator, Janice Charette, said formal talks between trade representatives have not yet taken place. Sources told Global News that Canada sees a window to reach a deal with the Trump administration before the Nov. 3 midterms, which polls suggest could shift party control in at least one chamber of Congress. Despite the apparent restart in talks, the sources remained sceptical a deal could be reached before election day. Global News granted them anonymity so they could speak openly about the politically sensitive negotiations.

Reuters, citing four Canadian and two U.S. sources, reported that the countries are working on a deal to ease Trump’s tariffs on Canadian steel and autos ahead of the election. Whether an agreement can be reached remains uncertain; past deals made by Trump have been overturned days or weeks later. Tariffs have also become a sticking point for the U.S. heading into the midterms. Some Republican candidates who previously praised Trump’s duties on Canada have changed their position. Michigan Republican candidate Mike Rogers released an ad early this month calling on Trump to end the trade war with Canada, which has affected border states such as Michigan.