Canadian Prime Minister Mark Carney said Saturday that negotiations with the United States were moving forward again, following their collapse in August. Speaking in Manila on November 14, Carney said he had held an extended discussion with U.S. President Donald Trump and senior administration officials before departing on his trip to Europe and Asia.
Carney said a bilateral agreement remained possible, although the countries had not reached one. U.S. Trade Representative Jamieson Greer and Stephen Miller, Trump’s new White House chief of staff, also joined the call. Carney said Canada would reject any agreement that weakened its auto industry, which has suffered under Trump’s tariffs.
The renewed discussions follow Canada’s decision to suspend negotiations in August over last-minute American demands that Ottawa found unacceptable. Washington later placed tariffs of 50% on approximately $20 billion worth of Canadian goods. Canada responded with retaliatory tariffs in September, and the two governments have since returned to talks. An agreement could ease some duties affecting major industries, including steel and aluminum.
Before the U.S. midterm elections, Trump described the countries as “very close” to a deal. Carney said Washington had withdrawn demands concerning Canadian culture, protections for the French language and Canada’s freedom to negotiate trade agreements with other partners. Democrats made tariffs on Canadian products an election issue, arguing that they raised prices and promising to challenge them.
Democratic victories have complicated Ottawa’s decision over how to proceed. Canada must weigh an agreement that would lower Trump’s tariffs while retaining some of them against waiting for free trade as Congress prepares to contest the duties. The stakes are substantial for two countries that maintain one of the largest trading relationships in the world.
Meanwhile, Carney announced that Canada had substantially finished free-trade negotiations with the Association of Southeast Asian Nations, whose members represent nearly 700 million people. Separate negotiations with the Philippines have also been completed. Both initiatives are intended to lessen Canada’s dependence on the American market during Trump’s trade war.
Canada’s government estimates that the ASEAN agreement could contribute nearly 2 billion Canadian dollars, equivalent to US$1.4 billion, to the economy and generate almost 14,000 jobs, especially in agriculture and manufacturing. Officials aim to sign it next year. The Philippines agreement is also expected to be signed next year and, according to Carney, covers more than 90% of tariff lines. The government says it could help triple Canadian exports to the Philippines by 2035.
Carney arrived in Manila ahead of a three-day ASEAN summit with Asian and Western counterparts beginning Sunday, after attending the European Political Community summit in Ireland. His itinerary also includes the Francophonie summit in Cambodia and the Asia-Pacific Economic Cooperation summit in China, where he is scheduled to meet President Xi Jinping. Doubling Canada’s exports to markets outside the United States by 2035 is a central goal of his government.
