Canadian Federal Trade Minister Dominic LeBlanc is doubtful that a security and economic framework agreement can be reached in time to meet Donald Trump’s August 1st deadline. Late last month, President Trump sent letters to a list of nations, including Canada, telling them that if individual trade deals were not in place by the first of August, his administration would impose tariffs on additional imports from those countries.
Trump’s letter threatened Canada with 35 percent tariffs, but the White House also stated that those levies would not be applied to Canadian imports that are compliant under the USMCA. Canada is currently being hit with import tariffs on steel, aluminum, and automobiles, and expects to be impacted by copper duties as well.
Trade Minister LeBlanc told reporters that negotiations are continuing, but the American and Canadian discussions are extremely complex because there is no other arrangement that is similar to the Canada-U.S. relationship.
“The Canadian-American economic and security relationship is unique. There is no comparison with other countries, the way the trading and security relationship between our countries has evolved. That’s why these are complicated conversations. We’re only going to be in a position to accept a deal when the Prime Minister decides that it’s the best deal we can get.”
Prime Minister Mark Carney has been quite clear that his negotiators take the time needed, and his officials have been instructed to get the best security and trade terms possible, regardless of short-term deadlines. According to Carney, the outcome of this arrangement is crucial to the future well-being of Canada.
“This is about building this country and coming to a good accord with the United States. We’re working to get the best deal for Canadians. What’s clear is, we have a lot to do.”
Canadian officials have remained quiet about what American negotiators want from Canada. A recent U.S.-Japan agreement included a $550 billion Japanese investment pledge. When LeBlanc was asked if his discussions included promises of capital investment by Canada, LeBlanc would only say that Canada would openly welcome the opportunity to display its current U.S. investments, which will lead to future investments.
“If they’re looking for countries that invest massively in the United States, that’s great news for Canada. Our pension funds alone have over a trillion dollars of investment in the United States. That can potentially grow by $100 billion or more a year. That example repeats itself all over the place. So, if one of the objectives is to show the United States administration that Canadians are investing in the United States, we’re in a very good position.”