Canada and the United States are engaged in intensive talks aimed at reaching an agreement before the August 19 deadline, when new tariffs could potentially come into effect on a wide range of Canadian products.
Ottawa believes that negotiations with Washington are moving in a “positive direction,” Canadian media reported Friday. Canadian Minister responsible for Canada-U.S. trade relations Dominic LeBlanc met Thursday with U.S. Trade Representative Jamieson Greer for the second time this week.
The U.S. administration plans to impose, starting August 19, new tariffs of up to 50% on nearly $20 billion worth of Canadian goods, including automobiles, dairy products, cement and furniture.
Unlike usual trade arrangements, these additional tariffs would also apply to goods that comply with the Canada-United States-Mexico Agreement (CUSMA).
The U.S. administration has justified the threat by citing “discriminatory measures” applied by Canada and is seeking concessions from Ottawa. Washington has notably raised concerns over local investment requirements imposed on U.S. automakers, as well as Canadian trade barriers outside the framework of CUSMA.
For its part, Ottawa is seeking to avoid a further escalation of trade tensions and to safeguard Canadian companies’ access to the U.S. market.
Representatives from both countries are stepping up consultations in an effort to finalize an agreement proposal to be submitted to U.S. President Donald Trump and Canadian Prime Minister Mark Carney by Monday, August 17.
Canada is one of the United States’ main trading partners. The two countries maintain one of the world’s largest bilateral trade relationships, with daily exchanges of goods and services amounting to several billion dollars.
