Mark Carney Reports Progress in Canada-US Trade Talks Ahead of Midterms

Canadian Prime Minister Mark Carney announced on Sunday that bilateral discussions toward a new trade pact with the United States have advanced, following a direct conversation with US President Donald Trump. The breakthrough comes two days before the November 3 US midterm elections, which will determine control of the US Congress.

Writing on social media platform X, Carney described having a constructive dialogue with Trump concerning the future of commercial ties between the two North American allies. Carney stated that working delegations from both nations will continue negotiations in the coming weeks to establish the outlines of a mutually beneficial trade framework.

Relations between Ottawa and Washington have suffered under an escalating trade conflict in recent months, marked by billions of dollars in reciprocal duties. Trade discussions collapsed in August, prompting Trump to institute a 50 percent tariff on $20 billion worth of Canadian imports, which represents 5.5 percent of Canada's total exports. In response, the Canadian government enacted equivalent retaliatory tariffs targeting American steel, dairy products, agricultural machinery, household appliances, electronics, and pulp and paper.

Trump noted last week that he anticipated a refreshed trade pact with Canada would be completed "pretty soon," though he did not provide specific terms or an exact timeline.

Election Pressure and New Alliances

The economic fallout from the cross-border duties has emerged as a key issue in the US midterm races. Republican contenders in border states such as Maine and Michigan have faced increasing political pressure from local business owners hurt by the mutual import restrictions.

Amid the frictions with Washington, Canada has actively worked to broaden its international commercial relationships. Ottawa recently welcomed a proposal from the European Union to join the bloc as an associate member. Carney commended the scope of the European initiative, framing the potential partnership as a unique strategic alliance rather than a traditional EU membership.

Source: Al Jazeera.