Carney, speaking to reporters in Ottawa, framed the upcoming USMCA review as a negotiations process rather than a directive from Washington. He said Wednesday that the United States does not get to dictate the terms for the continental trade deal, known as the United States-Mexico-Canada Agreement, or USMCA, ahead of the review in July.
Carney said Canada and the United States both have issues to resolve and described them as trade frictions that can be negotiated. He said Canada will work through “trade irritants or trade issues” and added that “We have some on our side as well,” in comments reported by the Associated Press.
Asked about a Radio-Canada report that American officials were imposing an “entry free” on trade talks with Canada and seeking concessions before negotiations begin, Carney said negotiations typically involve concessions requests. He said, “In any negations people ask for concessions,” and said Canada has “strengths” and “options,” adding that “We’re diversifying our options.”
Carney’s remarks came after U.S. Commerce Secretary Howard Lutnick criticized Canada’s approach to the USMCA talks, including comments about Canada keeping American liquor off provincial shelves and about Canadian provinces’ positions in the negotiations. Lutnick also criticized Carney personally for striking a deal with China that reduced China’s tariff on Chinese-made electric vehicles to 6.1%, with an annual cap of 49,000 vehicles, according to the AP report.
In responding to the broader dispute over trade irritants, the AP report said a recent report from the Office of the U.S. Trade Representative cited Canada’s refusal by some provinces to stock American alcohol and “high tariffs on some American dairy products” as irritants. Carney has promised to protect Canada’s dairy, poultry and egg production during the free trade talks with the United States.
Carney also addressed U.S. concerns about Canada’s procurement approach, including what the AP described as a “Buy Canadian” policy that gives priority to Canadian products and workers on projects worth more than 25 million Canadian dollars, or about $18 million. The AP report said the United States is pushing back against that policy.
Carney was asked if it is unacceptable that the United States has not yet put items on the negotiation table, and he responded in a 10-minute video released Sunday. In that video, he said Canada’s economic ties to the United States were once a strength but have become a weakness that must be corrected, and he said Trump’s tariffs have affected workers in the auto and steel industries.
In the video, Carney also described efforts by his government to strengthen the Canadian economy by attracting new investments and signing trade deals with other countries, while insisting that the USMCA negotiations remain open to a negotiated outcome.