OTTAWA \u2014 Prime Minister Mark Carney said it is not just the United States that sets the negotiation terms for the upcoming review of the Canada-United-States-Mexico-Agreement (CUSMA), but also acknowledged the outcome of those discussions will likely take \u201csome time.\u201d<\/p>\n
\u201cIt\u2019s not a case of the United States dictates the terms, we have a negotiation, we can come to a mutually successful outcome, it will take some time,\u201d Carney told reporters, on his way into a cabinet meeting on Wednesday morning.<\/p>\n
Carney said his government has \u201cmultiple levels of contact\u201d with U.S. counterparts and that parties on both sides are working through a series of trade issues.<\/p>\n
\u201cWe\u2019re well prepared around those issues,\u201d he said. \u201cWe will sit down and work through those issues with the broader approach in the negotiation.\u201d<\/p>\n
Carney added that his government has made some counter proposals to the Americans.<\/p>\n
The prime minister\u2019s comments come one day after Janice Charette, Canada\u2019s chief trade negotiator to the U.S.,\u00a0said she would like to see \u201cmutuality\u201d from Washington in recognition of concessions Canada has already made to address U.S. President Donald Trump\u2019s concerns.<\/p>\n
Last June, the federal government removed the digital sales tax on U.S. tech giants and withdrew most of the retaliatory tariffs that were put in place last February.<\/p>\n
\u201cSo far it\u2019s being pocketed,\u201d said Charette, during a Canadian Chamber of Commerce summit in Ottawa on Tuesday. \u201cAnd I think it will be important for us to see some mutuality in terms of the negotiating process.\u201d<\/p>\n
The existing CUSMA trade pact runs until 2036, but it includes a clause that allows countries to exit with six months\u2019 notice. The deal is set to be reviewed in July 2026. The Mexicans are currently further along in negotiations with the Americans. United States Trade Representative Jamieson Greer was in Mexico City this week and agreed to begin formal bilateral negotiations at the end of May with Mexico.<\/p>\n
Charette said on Tuesday that July review deadline \u201cis kind of a checkpoint \u2014 it\u2019s not a cliff.\u201d Charette said it will not determine the future of the trade relationship.<\/p>\n
Still, negotiations are likely to be contentious. The Americans have a number of trade irritants with Canada, including Canada\u2019s dairy supply management system, a ban on U.S. alcohol in most Canadian provinces and Canada\u2019s policies on digital sovereignty.<\/p>\n
Greer signalled in March during an interview with Fox Business, that the U.S. alcohol ban was non-starter for negotiations to begin.<\/p>\n
More to come.<\/p>\n
National Post<\/p>\n
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