Canada’s ambassador to the United States emphasized the necessity of reintroducing American alcohol into Canadian markets as a fundamental step towards finalizing a trade agreement and averting potential new tariffs, according to information obtained by CBC News. Mark Wiseman relayed this message while providing a comprehensive overview of the trade deal to approximately 100 members of the Canada-U.S. trade council, which comprises various businesses, industry organizations, and labor groups.
In ongoing discussions in Washington between Canada’s negotiating team and the Trump administration, the focus is on preventing the imposition of 50% tariffs on Canadian exports, with a looming deadline of midnight on Friday. Wiseman outlined a preliminary consensus aimed at avoiding the new tariffs during the approximately 30-minute briefing, as reported by sources privy to the call.
Additionally, Wiseman revealed that around 35 Canadian officials at the Canadian Embassy in Washington are diligently working to finalize the agreement’s language within a tight timeframe of 24 to 48 hours, as mentioned by sources. The potential deal encompasses reductions in steel, aluminum, and auto tariffs, as well as modifications to the allocation of dairy import licenses by the government, which has raised concerns within the dairy industry about increased competition from American dairy products.
Following Wiseman’s departure from the call, Steve Verheul, Canada’s former chief trade negotiator, cautioned the council about potential drawbacks of the proposed deal, according to multiple sources. Verheul, known for his role in prior negotiations such as the Canada-U.S.-Mexico Agreement and NAFTA, expressed apprehension that while immediate threats like Trump’s Section 338 tariffs must be addressed, Canada risks surrendering long-term advantages by making concessions that could lead to further demands from the U.S.
Verheul stressed the importance of not accepting sectoral tariffs on aluminum, steel, and autos as legitimate and urged Canada to maintain a commitment to duty-free trade, especially with the upcoming CUSMA review. He highlighted the need for clear communication with industries involved and critiqued the lack of substantive data shared with key stakeholders, contrasting the level of engagement with the U.S. industry. Former finance minister and deputy prime minister Chrystia Freeland, also an advisor to the council, raised concerns about the potential challenges of removing agreed-upon tariffs in the future, even under a different administration in Washington.
The insights and debates during the call underscore the complexities and stakes involved in reaching a mutually beneficial trade agreement between Canada and the U.S.