Prime Minister Mark Carney said Monday that Canada's negotiations with the United States are in an "intense phase" after President Donald Trump announced a trade agreement with the European Union.
"There are many aspects to these negotiations," said Carney in Prince County, P.E.I. "We are engaged in them but the assurance for Canadian business, for Canadians, is we will only sign a deal that's the right deal, that's a good deal for Canada."
The prime minister's comments come after Trump last week told reporters that Canada wasn't a priority for his administration ahead of his Aug. 1 deadline to make trade deals.
The EU framework announced Sunday gave Trump a much-needed win as he looks to realign global trade — and it indicates that no nations are likely to get a reprieve from his tariffs.
It sets a 15 per cent tariff on most goods, including European automobiles, but doesn't appear to shield the European Union from looming sectoral tariffs on things like pharmaceuticals. Trump also said 50 per cent tariffs will remain on steel and aluminum.
Trump said the EU had agreed to buy US $750 billion worth of U.S. energy and invest an additional US $600 billion in America.
Baseline tariffs were also a part of the frameworks of deals previously announced for Japan, Vietnam, Indonesia, the Philippines and the United Kingdom.
Countries around the world have been watching to see how many trade deals materialize ahead of the deadline and what can be learned for their own negotiations with the Trump administration.
Trump sent a letter to Carney threatening to impose 35 per cent tariffs if Canada doesn't make a trade deal by Friday. The White House has said those duties would not apply to goods compliant with the Canada-U.S.-Mexico Agreement on trade.
The Canadian economy is significantly impacted by Trump's sectoral tariffs on steel, aluminum and automobiles and will be hit by copper tariffs the president has said will also go in place by the week's end.
Carney said that while there are similarities between the Canada-U.S. negotiations and those involving Europe, there are also many differences.
Geography connects Canada and the United States deeply in both the economy and security, Carney noted. While Europe is looking to end its reliance on Russian energy, Carney said Canada is a reliable supplier to the United States in that area.
The prime minister said negotiations remain complex but "there is a landing zone that's possible."
"But we have to get there," he said.
Picture Courtesy: THE CANADIAN PRESS/Nathan Denette
