VANCOUVER, British Columbia (AP) — Canadian Prime Minister Mark Carney said Wednesday that Washington does not have the power to determine the terms of a continental trade deal called the United States-Mexico-Canada Agreement (USMCA) and addressed obstacles ahead of a review of the deal in July.
The deal, which dates back to the early 1990s and linked the economies of the three North American countries, has hit roadblocks due to U.S. President Donald Trump’s changing tariff policies.
Carney told reporters in Ottawa that adjusting to the latest version of the deal “will take some time.”
“We understand what some Americans call trade irritants or trade concerns,” Carney said. Trade incentives are policies that create friction and disputes in international trade.
“We also have some people on our side,” he added. “We will sit down and address these issues in a broader way in negotiations.”
“This is not a situation where the United States determines the terms. We negotiate. We can achieve a win-win outcome,” Carney also said. “It’s going to take some time.”
Carney’s comments came after CBC’s French-language radio station reported that U.S. officials were in trade talks with Canada and were demanding concessions before negotiations could begin.
Asked about the radio report, Carney said that in any denial, “people are going to ask for concessions.” “We have advantages, we have options. We are diversifying our options.”
Last week, U.S. Commerce Secretary Howard Lutnick attacked Canada’s approach to trade negotiations, claiming Canada was dependent on the U.S. economy and that it was “outrageous” for Canadian provinces to remove U.S. alcohol products from their shelves.
He also criticized Carney’s deal with China to reduce 100% tariffs on Chinese-made electric vehicles to 6.1%, with an annual cap of 49,000 vehicles. In turn, China is expected to reduce retaliatory tariffs on Canadian agricultural products.
A recent report from the Office of the U.S. Trade Representative cited the refusal of some Canadian provinces to stock U.S. alcohol and the imposition of high tariffs on some U.S. dairy products as trade incentives.
Carney pledges to protect Canadian dairy, poultry and egg production during free trade talks with U.S.
The United States also opposes the “Buy Canada” policy, which prioritizes Canadian products and workers on projects worth more than 25 million Canadian dollars (about 18 million U.S. dollars).
Carney was asked if it was unacceptable that the U.S. has not yet put anything on the table.
Carney said in a 10-minute video released on Sunday that Canada’s close economic ties with the United States were once a strength but are now a weakness that must be corrected. He said Trump’s tariffs affected workers in the auto and steel industries.
He also spoke about the government’s efforts to strengthen Canada’s economy by attracting new investment and signing trade deals with other countries.