Canada and the United States have yet to start negotiations over their free trade deal, but they are already publicly squabbling over various issues, reflecting the depth of their ruptured relations.<\/p>\n
As their talks to renew the North American trade pact that also includes Mexico have failed to get underway, Ottawa and Washington over the past week exchanged threats and insults, with the United States particularly perturbed over the decision by eight Canadian provinces last year to remove American wine and spirits from the shelves of government-owned liquor stores.<\/p>\n
In a hearing before the Senate on Wednesday, Howard Lutnick, the U.S. secretary of commerce, called the move \u201cinsulting\u201d and \u201cdisrespectful,\u201d and also complained that Canada discriminates against American dairy products.<\/p>\n
The same day, Jamieson Greer, the U.S. trade representative, said the United States was \u201ckind of at the end our rope\u201d when it came to the American alcohol ban and suggested he may take \u201can enforcement action\u201d over it.<\/p>\n
On Thursday, Prime Minister Mark Carney of Canada snapped back when asked about Mr. Greer\u2019s threats, saying that Canada has grievances of its own when it comes to the United States.<\/p>\n
\u201cYou know what\u2019s an irritant? A 50 percent tariff on steel and aluminum, 25 percent on automobiles, all of the tariffs on forest products,\u201d Mr. Carney told reporters at a construction site in the capital where he had made a housing announcement. \u201cThose are more than irritants. Those are violations of our trade deal, OK?\u201d<\/p>\n
While pointing out that Canada\u2019s federal government has no powers over provincial liquor stores, Mr. Carney suggested that American alcohol will only return to Canadian shelves once the United States lifts punishing tariffs which have had a significant effect on Canadian industries.<\/p>\n
\u201cWe can make progress very quickly on that with progress in other areas,\u201d Mr. Carney said.<\/p>\n
Canada\u2019s largely closed dairy market, Mr. Lutnick suggested, breaks the terms of the United States-Mexico-Canada trade pact which has a July 1 deadline for its review.<\/p>\n
\u201cWe are trying desperately to get them to live to the deal that they have on U.S.M.C.A. and stop treating our dairy farmers so poorly,\u201d he testified.<\/p>\n
Last week, while speaking at a conference, Mr. Lutnick blasted Canada<\/a> for its trade negotiating strategy, adding, \u201cThey suck.<\/a>\u201d<\/p>\n Mr. Greer noted that only Canada and China have retaliated against President Trump\u2019s tariffs over the past year, adding: \u201cSo that\u2019s the kind of company they\u2019re running in.\u201d<\/p>\n He said he had told Canadian counterparts consistently over the past year that if they could make some changes in Canadian trade practices, \u201cit\u2019s going to help me get over the political hump that we face here in the United States. So I think there are things that can be done.\u201d<\/p>\n In sharp contrast to his dealings with Canada, Mr. Greer\u2019s office announced after he visited Mexico City this week that talks between Mexico and the United States on the trade agreement will start on May 25.<\/p>\n Mr. Carney dismissed the significance of a lack of a similar date for Canada.<\/p>\n \u201cWe\u2019re ready to go into detailed negotiations,\u201d he said. \u201cWe\u2019re also ready to wait if that\u2019s what has to happen.\u201d<\/p>\n Earlier this week several Canadian news outlets, citing unnamed sources, said that the United States is demanding that Canada make concessions before any review of the trade agreement can begin. The sources described it as an admission fee to the negotiations.<\/p>\n Mr. Carney, however, said on Thursday that those reports are incorrect.<\/p>\n \u201cI don\u2019t know where the talk of an \u2018entry fee\u2019 is from, certainly it\u2019s not coming from me,\u201d he said. \u201cAnd it\u2019s not language I\u2019ve ever heard from the president of the United States.\u201d<\/p>\n He added: \u201cThese things have their own rhythm. They also have what\u2019s happening above the surface and what\u2019s happening below the surface.\u201d<\/p>\n