The Trump administration is demanding what amounts to an ‘entry fee’ from Canada, in the form of agreeing to some concessions just to engage in trade talks relating to the USMCA deal. In particular, the U.S. administration is demanding pre-negotiation concessions from Canada by changing the way Canada administers its dairy quotas and how it governs digital media.
Alcohol is still one of Washington’s biggest trade irritants, as U.S. negotiators cannot accept that some provinces continue to keep American wine, beer, and spirits off their shelves. Canadian Prime Minister Mark Carney said any trade irritants should be discussed formally at the negotiation table, but the time for those formal negotiations has not yet arrived.
The Carney government and its negotiating team are under increased pressure from industry and opposition political parties to show more trade deal progress with Washington. In response to that pressure, and the Trump administration’s demand for Canada to make some concessions before formal USMCA negotiations, Canada’s Trade Minister Dominique LeBlanc said they won’t sign a deal that is bad for them.
Minister LeBlanc will also chair the revamped Canada – U.S. Advisory Committee. That committee’s purpose is to advise and to actively support the efforts of the Canadian trade negotiation team. The committee includes several high-profile members from across the private sector and government officials. One of the new members includes Ralph Goodale, Canada’s former High Commissioner to the United Kingdom. Goodale said dealing with a turbulent, sometimes chaotic Trump administration requires extreme levels of patience by all members of the Canadian negotiating team.
We will continue to provide updates on negotiations as they happen.
