Canada-U.S. Trade Agreement In The Works

Prime Minister Mark Carney and U.S. President Donald Trump have discussed the possibility of a new Canada-U.S. trade agreement, with officials from both countries expected to continue talks in the coming weeks.

Carney described his conversation with Trump as productive and said both governments will work toward an agreement that benefits their respective economies. Trump has also suggested the two countries have the broad outline of a potential deal, although Canadian officials have cautioned that significant issues remain unresolved and the format of the next round of discussions has not been determined.

The renewed engagement follows the breakdown of negotiations in August, after Canada and the United States failed to resolve disputes involving tariffs and several major industries. Autos are expected to remain a central issue, alongside steel and aluminum. Carney has maintained that Canada will not accept an agreement that significantly damages domestic industries or limits the country's ability to pursue its own trade relationships.

The discussions come as the Trump administration adjusts some of the tariffs imposed on Canadian products. Washington recently removed several Canadian goods from its 50 per cent Section 338 tariffs while adding other products to the list. The changes take effect Oct. 30, days before the Nov. 3 U.S. midterm elections.

The tariff dispute has become an issue in several American races, including the closely watched Senate contest in Maine. Republican Senator Susan Collins, who is seeking re-election, said she successfully pressed the Trump administration for exemptions covering several Canadian products important to Maine businesses and agricultural producers.