Canada Presses for Wider Trade Agreement in Talks With US
(Bloomberg) — Canada-US Trade Minister Dominic LeBlanc said the government wants to resolve trade frictions with the Trump administration as part of a comprehensive agreement, rather than through “one-off” deals.
LeBlanc said the irritants US officials raise privately are the same ones they’ve outlined publicly. A recent report by US Trade Representative Jamieson Greer’s office flagged Canada’s supply-managed dairy system, regulations affecting major US technology firms and other long-standing trade concerns.
“If we’re going to resolve some of these issues that Ambassador Greer referred to, Canada is ready and willing to do that work,” LeBlanc told a parliamentary committee Thursday.
But he said any progress must come as part of a “larger agreement” that would ease pressure on tariff-affected sectors of Canada’s economy and provide greater certainty around the US-Mexico-Canada Agreement review process.
The minister’s comments shine a light on the strategic considerations of the US, Canada and Mexico in the trade discussions, which have been partly shaped by the Trump administration’s behavior toward its trading partners.
US officials have pushed Canada for specific concessions and sometimes received them — without giving Canada anything in return. Last June, Prime Minister Mark Carney’s government dropped a digital services tax at the Trump administration’s request. But weeks later, President Donald Trump raised the tariff rate on Canadian goods anyway. Carney then dropped many of Ottawa’s retaliatory tariffs against the US as the two sides were talking. But Trump broke off those discussions the following month.
LeBlanc pushed back when an opposition lawmaker cited remarks from US Ambassador Pete Hoekstra, who claimed in March there had been no “substantive” discussions with Canada since October.
The minister pointed out it was Trump who halted negotiations in October on a potential deal covering Canadian steel, aluminum and energy, after the president reacted angrily to an anti-tariff advertisement from the Ontario government. Discussions picked up again in early March when LeBlanc traveled to Washington.
“I would have hoped that by last fall we would have resolved part of the situation,” LeBlanc said. “Now we’re back around the table to do the work. It is moving forward. I can assure you of that.”
LeBlanc said discussions have continued across several channels, highlighting a “productive” 45-minute call with US Commerce Secretary Howard Lutnick last week, as well as ongoing meetings involving Mark Wiseman, the Canadian ambassador to the US, and Janice Charette, the chief trade negotiator.
Greer has said US talks with Mexico are further advanced, and he’s scheduled to travel to Mexico City on Monday to continue bilateral discussions linked to the USMCA review. LeBlanc said Canadian officials are also in regular contact with Mexican counterparts. Mexican Economy Minister Marcelo Ebrard has planned an upcoming visit.
On dairy policy, LeBlanc reiterated that Canada will not sacrifice its supply-managed system, which is protected by legislation passed last year. He also defended Wiseman, who previously authored an opinion piece critical of that system.
“I have borne witness to his exceptional work since he’s been in his position in Washington,” LeBlanc said. “You will also understand that Mr. Wiseman is not the one who decides on Canada’s policy when it comes to supply management. Parliament unanimously adopted a bill on this. He is well aware of the government’s position.”
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