Canada’s envoy to the U.S. emphasized the necessity of reintroducing American alcohol to Canadian markets as a crucial step towards finalizing a trade agreement with the U.S., according to information obtained by CBC News. Ambassador Mark Wiseman conveyed this message during a comprehensive briefing on the potential trade deal to approximately 100 members of the Canada-U.S. trade council.
In their ongoing discussions with the Trump administration in Washington, Canada’s negotiating team is striving to avert a scenario where Canadian exports face steep 50% tariffs, with the looming deadline set for midnight Friday. Wiseman outlined a preliminary consensus aimed at sidestepping the imposition of new tariffs, as shared by three sources privy to the call.
Reportedly, Wiseman disclosed that around 35 Canadian officials stationed at Canada’s Embassy in Washington are diligently working on finalizing the agreement’s wording. He expressed hopes of concluding this task within 24 to 48 hours from the time of the call on Thursday morning.
The potential deal under consideration encompasses reductions in steel, aluminum, and auto tariffs, as well as modifications to the allocation of dairy import licenses by the government, a move that could potentially increase the presence of American dairy products in Canadian retail outlets.
Following Wiseman’s departure from the call, Steve Verheul, a key adviser to the council and Canada’s former chief trade negotiator, cautioned about the risks associated with the proposed deal. Verheul, known for his role in negotiating the Canada-U.S.-Mexico Agreement and the previous NAFTA talks, voiced concerns over the short-term threat posed by Trump’s latest Section 338 tariffs.
Verheul highlighted the potential drawbacks of agreeing to accept sectoral tariffs and making substantial concessions, suggesting that such actions could undermine Canada’s leverage during the forthcoming CUSMA review. Furthermore, he contended that the American industry was largely in favor of maintaining duty-free trade under CUSMA.
It was revealed that participants on the council’s call reacted strongly to the news that the auto industry’s desired exemptions from American tariffs were not being granted, with the matter being deferred to future CUSMA negotiations.
Verheul stressed the importance of Canada formally rejecting the sectoral tariffs on aluminum, steel, and autos imposed by the Trump administration, emphasizing the need to keep duty-free trade as a primary objective for the upcoming CUSMA review.
Moreover, he criticized the Canadian government for its lack of adequate consultation with affected industries and the limited briefing provided to provincial officials. Industry sources expressed frustration over the disparity in information sharing, with U.S. counterparts reportedly receiving more detailed briefings from the Trump administration.
Notably, former finance minister and deputy prime minister Chrystia Freeland, who played a pivotal role in renegotiating NAFTA into CUSMA, was also present during the council’s call. Freeland raised concerns about the potential challenges of reversing tariffs once agreed upon and cautioned against committing to tariffs that could be difficult to remove in the future.
