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Fedeli plans January trips to U.S. for trade talks
Ontario Trade Minister Vic Fedeli says he plans to visit the United States three times in January to push for a new trade agreement. He warns that President Donald Trump’s veto power makes progress uncertain, while a new round of U.S. tariffs is due to take effect Jan. 1.
Canada-U.S. trade tensions were seen as playing a role in Republican candidates’ losses in the midterm elections. Ontario Trade Minister Vic Fedeli told reporters Friday that he plans to travel to the United States three times in January in hopes of advancing a new trade agreement. He said the premier wants him to go after the new Congress is sworn in, so he can speak with people authorized to represent it. The newly Democratic-controlled Congress is expected to be sworn in in early January, raising hopes for progress on a deal.
Tariffs of up to 50 per cent on some Canadian goods have proved unpopular in U.S. border states and in states that depend on trade with Canada. U.S. Ambassador Pete Hoekstra predicted Friday that a new trade deal could be in place by Jan. 1, before the swearing-in ceremony.
Senator-elect Abdul El-Sayed won his race in Michigan, an auto-manufacturing hub. In a post-victory interview with CNN on Thursday, he called the trade war “insane.” In Maine, tariffs featured prominently during the campaign. The state is a popular tourism destination for Canadians and relies on agricultural imports. The Democratic victor criticized the Republican incumbent for not pushing back against Trump strongly enough.
Fedeli said Friday that the trade war is harmful to both countries. He said both the House and Senate passed motions in the past year condemning the tariffs as bad for Americans. But when it comes to action, he said, a majority is needed, especially as some lawmakers leave and others take their places.
Fedeli hopes the trade war will end, but said there is no certainty while U.S. President Donald Trump retains veto power. Overriding a presidential veto requires a supermajority, he said, making progress complicated. He cautioned against becoming overly optimistic.
The immediate priority, Fedeli added, is a new round of U.S. tariffs set to take effect Jan. 1. He said the focus is on preventing those general tariffs and then continuing the effort afterward.
Fedeli said Americans are realizing that tariffs on Canadian and U.S. goods in both directions raise prices, building momentum for an agreement. Steel and aluminium tariffs affect the cost of refrigerators, stoves and dishwashers, he said. Higher tin costs raise soup prices, while aluminium cans affect the price of beer and pop. Fedeli said the two countries have an integrated economy that cannot be separated.