We’re In A Stronger Position With The U.S., Says Canada’s PM

For Canada, the year 2025 will stand out as historic in many ways, not least of which was Mark Carney replacing Justin Trudeau as the country’s new Prime Minister. And in that role, Carney, by necessity, acts as Canada’s chief trade representative on the world stage.

In April, Carney won the Canadian federal election, returning the Liberal Party to minority power in Ottawa. Today, that minority is just one seat away from a majority government after several members recently crossed the floor to join the Liberals. If just one more member crosses the aisle, Carney’s Liberals will no longer need to seek outside votes to rule federal Parliament. So, it’s not surprising that Prime Minister Carney is headed into the New Year in a fairly optimistic frame of mind. Recently, Carney sat down to discuss the International Trade File.

He said that while several sectoral tariffs receive most of the attention, the larger USMCA continues to operate as the world’s largest free-trade agreement. And that, according to Carney, puts Canada in a stronger position than many, though it was under Justin Trudeau.

“We’re in a stronger position today with the United States than we were at the start of the year," Carney noted.  "We can always do better, but if you look at where we are, we have the best deal of any country in the world. Relative to other countries, 85 percent of our trade’s tariff-free to the U.S. market.”

Trade Talks Not Expected To Go Smoothly

In the upcoming USMCA review and following negotiations, Carney said that the existing sectoral tariffs involving steel, aluminum, lumber, and automotive sectors will be a necessary portion of the review and negotiations to follow.

And he says that he does not expect those negotiations to go smoothly with a Donald Trump-led administration in the U.S. Carney says that priorities tend to constantly shift as trade discussions progress, especially when it seems like U.S. negotiators are making choices that go against their own American interests.

“The United States needs to make a choice," Carney said.  "Does it recognize that the U.S., itself, is in a stronger position if there is relatively free movement of automobiles, steel, aluminum, and lumber across the US border, or not? And does it view its competitors as Canada, or does it view its competitors as China? These are perspectives that the U.S. takes different views on at different points in time.”

Canada Looks To Be Less Dependent On The U.S.

And while Canada’s negotiating team prepares for the formal USMCA review coming up in the new year, the prime minister explained that efforts to diversify Canada’s export markets continue.  Mark Carney also discussed several large domestic projects designed to make Canada its own best customer, and less dependent on an American market and neighbor that has changed

“The United States has fundamentally changed its trading relationships with everybody in the world, Canada included," Carney said.  "What we can control is what we build here at home, and trade deals and relationships abroad; all of that puts us in a stronger position. More independent. We’re just entering the next phase of these discussions. There will be negotiations in the end, which will start early in the next year.”

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