Canadian and American trade negotiators were actively working on drafting a potential agreement before U.S. President Donald Trump unexpectedly halted trade discussions last week, according to Canada’s ambassador in Washington. Ambassador Kirsten Hillman informed the Senate foreign affairs committee that both parties were in the process of outlining the initial steps towards a trade deal between Canada and the United States.
The abrupt termination of negotiations came following an advertisement by the Ontario government that utilized former U.S. president Ronald Reagan’s statements to convey an anti-tariff message to American audiences, as announced by Trump in a late-night social media post.
During a Senate committee hearing, Hillman was questioned about the progress of the talks prior to their sudden suspension. While she acknowledged advancements made since Prime Minister Mark Carney’s recent visit to Washington, she noted the existence of certain unresolved issues.
Although a meeting between Carney and Trump took place on Wednesday, where they acknowledged each other during a dinner toast ahead of the Asia-Pacific Economic Cooperation Summit, there appeared to be limited engagement between the two leaders.
Initially, Ottawa aimed for a comprehensive trade and security agreement that would include tariff relief. However, recent efforts have shifted towards specific sectoral tariffs as indicated by a report from the Globe and Mail suggesting a potential deal on aluminum and steel before the APEC summit, a claim downplayed by Carney.
Hillman emphasized that recent discussions were mainly centered on steel and aluminum but not exclusively, mentioning the U.S.’s preference to prioritize certain issues while not neglecting others. The focus was on sequencing various industries for discussion rather than excluding any particular sector.