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

Prime Minister Mark Carney said Wednesday that Canada is “not at that position right now” to reach a trade deal with the United States before next week’s midterm elections. Asked why he was willing to consider a deal before the vote, and whether Canada was being set up as a “fall guy” if the U.S. administration lost, Carney said his government is seeking the right agreement for Canadians. He said Canada would pursue agreements that serve Canadian interests first and also benefit the United States, if such opportunities arise, but that the government is not there yet.

His comments came days after Global News reported 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, when Canada withdrew. Carney said afterward that the U.S. had 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 counter-tariffs. The latest discussions have remained at the political level, the sources said, with Canada’s Trade Minister Dominic LeBlanc leading the Canadian side. Canada’s chief negotiator, Janice Charette, said formal negotiations between trade representatives have not yet taken place.

Sources told Global News that the Canadian side sees a window to reach a deal with the Trump administration before the Nov. 3 midterms. Polls suggest the vote could shift control of at least one chamber of Congress. Although talks appear to have restarted, sources remained sceptical that 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 before the elections. Whether an agreement can be reached remains uncertain; Trump has previously made deals that were undone days or weeks later.

The tariffs have also become a sticking point in the United States ahead of the midterms. Some Republican candidates who once applauded Trump’s duties on Canada have changed their position. Mike Rogers, the Republican candidate in Michigan, released an ad early this month urging Trump to end the trade war, which has affected border states such as Michigan.

With files from Global News’ Mackenzie Gray and Alex Boutillier.