Big gap remains between Canada and U.S. in ongoing trade talks: source
The distance on a potential deal comes after a week of negotiations in Washington between Canadian and U.S. officials, labelled by multiple sources as constructive.
Canada and the United States are far from finalizing a trade agreement to lower existing tariffs and prevent new American tariffs from taking effect next week, according to an insider familiar with the ongoing negotiations. Despite a week of constructive talks in Washington, where both sides meticulously reviewed individual tariffs, a significant gap remains between the nations.
Global News has been instructed not to disclose the identity of the source due to their lack of authorization to speak publicly about the trade discussions.
The trade deal, if reached, would likely include some form of tariffs on steel, aluminum, automobiles, and lumber. However, Canada is unwilling to sign an agreement without substantial reductions in American tariffs. Auto industry insiders have expressed reluctance to accept any tariff level on Canadian-made autos and parts under the Canada-U.S.-Mexico Agreement (CUSMA), warning that it would pose a major threat to the Canadian industry.
Unifor's national president, Lana Payne, stated at a news conference in Brampton, Ontario, that the Canadian government should not make any concessions to the United States, emphasizing that the U.S. has imposed tariffs on Canadian goods.
On the other hand, the United States is pushing for changes in current quota allocations for U.S. dairy that can be sold to Canada without tariffs and for American alcohol to be reintroduced in all provincial liquor stores. The Dairy Farmers of Canada has stated that no additional concessions should be made on dairy or supply management during the negotiations with the United States.
U.S. Trade Representative Jamieson Greer reiterated on Friday that new 50% tariffs on certain Canadian goods are a response to retaliatory measures. He likened these measures to those taken by China and stated that they must be resolved. The Canadian government's preference, according to multiple sources, is to reach an agreement before the scheduled 50% tariff imposition on Aug.
19. This strategy is part of a three-pronged plan outlined to sources familiar with the Carney government's approach. The steps include cutting a deal on sectorial tariffs to prevent new ones, signing partnerships in areas like energy and defense, and renegotiating CUSMA in a more stable environment. The U.S. has declined to agree to a renewal of the free trade pact at its scheduled review, despite Canada and Mexico advocating for a 16-year extension.
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