Prime Minister Mark Carney and U.S. President Donald Trump engage in a meeting at the White House in Washington in early May. The two have been in contact to talk about trade and security agreements, according to the U.S. ambassador.Adrian Wyld/The Canadian Press
Prime Minister Mark Carney is holding direct talks with U.S. President Donald Trump to iron out a framework for a trade and security agreement, the U.S. ambassador to Canada says.
Pete Hoekstra told The Globe and Mail that talks between the leaders and top cabinet ministers are being held under a cone of silence to ensure a positive outcome.
The Prime Minister and the President met in the Oval Office on May 6 but there has been no indication until now that they have been holding direct negotiations.
“You have the relationship and the discussions between the President and the Prime Minister,” Mr. Hoekstra said, adding “they have had conversations, more than just the Oval Office.”
“The indications that they are talking and in communications regularly is a clear indicator to me that both sides recognize the importance and the urgency of moving this forward.”
The countries’ leaders agreed in March to begin comprehensive negotiations about a new economic and security deal after Canada’s federal election in late April. Mr. Carney’s Liberals won that vote after he campaigned on being the best person to deal with the President during a trade war.
The talks include Trade Minister Dominic LeBlanc, U.S. Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer, Mr. Hoekstra said.
Mr. Hoekstra said the Canadians and Americans are “laying out the perimeters” of a deal that could involve boosting U.S. content in autos, improving U.S. access to Canadian critical minerals and ensuring Canada plays a much bigger role in the Arctic. The talks also include increased defence spending, energy, border security, fentanyl as well as steel and aluminum.
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Innovation Minister Mélanie Joly confirmed talks between the Prime Minister and President are taking place. She told reporters it’s difficult to hold trade war talks in public but declined to say when a possible deal could be reached.
“I’m not going to negotiate in public and that the Prime Minister is not going to negotiate in public, but one thing is certain: we must be able to do two things: manage the current crisis and at the same time continue diplomatic talks,” she said.
The current talks are solely between Canada and the U.S. and do not involve Mexico, the ambassador said.
But he said the Canadians and Americans want the talks to be successful, which is why they are working hard to ensure there no leaks.
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Mr. Hoekstra said it was entirely possible that a deal could be reached before September, something the Prime Minister alluded to last week.
“Sure, September is possible. Is possible to be earlier. Sure. Is it possible that it will be later, sure,” he said. “When the President is ready to announce an agreement and the Prime Minister is ready to announce an agreement. That is when that will happen.”
The envoy said the United States under Mr. Trump is also looking for help from allies including Canada in its rising competition with China.
“The President has made it very, very clear. The No. 1 challenge to America’s security, to its safety and prosperity is China,” Mr. Hoekstra said. “We’re looking for, for people who will confront the challenges with China with us.”
He said every trade negotiation Washington is conducting with foreign partners includes Mr. Trump and Mr. Lutnick asking allies: “How do you see working with China? How’s China fit into your future?”
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Mr. Hoekstra praised Canada for its 2024 decision to match the United States in imposing steep tariffs on Chinese-made electric vehicles as well as steel and aluminum from China.
Pressure is growing, however, for Canada to resolve what has turned into a trade war with China, where Beijing hit Canadian agricultural and seafood imports with retaliatory tariffs. And premiers including Saskatchewan’s Scott Moe this week called for a broader and deeper commercial relationship with China.
Asked about whether Canada should expand trading relations with China, Mr. Hoekstra declined to offer counsel on this. “You view China how you view China,” he said.
Canada is under pressure at coming NATO meetings to join allies in boosting defence spending as a share of gross domestic product to 3.5 per cent. This would require tens of billions of additional dollars of defence spending each year. Right now Canada still lags a 2014 commitment from North Atlantic Treaty Organization members to raise military expenditures to 2 per cent of GDP. Canada spends about 1.37 per cent of its annual economic output on defence.
Asked whether the U.S. would accept Canada meeting its 2-per-cent target by 2030 – a timeline pledged by Mr. Carney during the recent federal election campaign – Mr. Hoekstra noted this was a commitment made 11 years ago.
He said it will be for Mr. Trump to decide whether 2 per cent by 2030 is sufficient.
Mr. Hoekstra also said he sees a role for Canada’s auto industry in partnership with the U.S. auto sector. That’s despite Mr. Trump’s criticism of Canada’s auto sector.
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Mr. Trump, who has imposed tariffs on imported cars, including from Canada, has repeatedly said he does not believe Canada should be assembling cars for U.S. customers and that he wants factories in this country to relocate to the United States.
About 100,000 Canadians work in Canada’s auto parts manufacturing industry, including tooling jobs. Another 25,000 work in the auto assembly industry.
In a normal year without U.S. tariffs, nearly half of Canada’s auto parts production is exported, most of it to the United States. About 80 per cent of assembled vehicles in Canada are exported to the U.S.
Mr. Hoekstra sees this integrated Canada-U.S. auto sector collaboration continuing.
“We could probably do a lot of the same stuff that we’ve done over the last 20 years,” he said. “We built a pretty phenomenal structure in place that’s benefited both countries. It may need to change a little bit, but, you know, I don’t see it being thrown out the window,” he said.
Ontario Premier Doug Ford said he spoke with Mr. Carney on Wednesday and the Prime Minister filled him in on the talks with the U.S.
“I know he’s in deep discussions right now with the administration in the U.S. and President Trump. But I was very clear with my message: the ideal situation is to get a deal, and if that deal does not happen in the next few days, then we have to slap another 25 per cent tariff on top of the existing 25 per cent tariff on our aluminum and steel,” he told reporters on Thursday at Queen’s Park.
Mr. Ford said he wouldn’t divulge details of what Mr. Carney told him about the talks, but suggested a deal with the U.S. is imminent.
“I just know that they’re at the brink. They’re working hard around the clock to try to get a deal,” he said.
With a report from Laura Stone at Queen’s Park