Canada’s ambassador to the United States emphasized during a video conference on Thursday that the reintroduction of American alcohol into Canadian markets is a crucial condition for finalizing a trade agreement and averting potential new tariffs, as reported by CBC News. Mark Wiseman delivered this message while briefing approximately 100 members of the Canada-U.S. trade council, composed of various businesses, industry associations, and labor groups.
In ongoing negotiations in Washington, Canada’s negotiating team is racing against the clock to reach a deal with the Trump administration before the looming deadline of midnight Friday to prevent hefty tariffs on Canadian exports. Wiseman, in a discussion lasting around 30 minutes, outlined a preliminary consensus aimed at sidestepping the imposition of new tariffs, according to sources familiar with the call. These sources, who are not authorized to speak publicly, shared insights with CBC News.
The potential agreement being worked on by approximately 35 Canadian officials at the Canadian Embassy in Washington includes provisions to reduce tariffs on steel, aluminum, and automobiles, as well as modifications to the allocation of dairy import licenses by the Canadian government. However, concerns were raised by former Canadian chief trade negotiator Steve Verheul, who cautioned against the pitfalls of rushing into a deal. Verheul, with experience in negotiating the Canada-U.S.-Mexico Agreement and NAFTA, expressed worries about potential long-term concessions and the risk of ceding leverage prematurely during the current negotiations.
Sources revealed that Verheul highlighted the risk of agreeing to sectoral tariffs imposed by the Trump administration and emphasized the importance of maintaining a strong negotiating position for future trade discussions under the CUSMA framework. He also underscored the need for Canada to resist formal acceptance of the current tariff structures on aluminum, steel, and automobiles while striving for duty-free trade arrangements.
Additionally, concerns were raised about the lack of adequate consultation with Canadian industries, with industry sources expressing frustration over being kept uninformed compared to counterparts in the U.S. who are reportedly receiving detailed briefings from the Trump administration. Former finance minister and deputy prime minister Chrystia Freeland, another adviser to the council, also participated in the call, raising pertinent questions about the implications of agreeing to tariffs and the challenges of reversing such decisions in the future amid potential changes in the U.S. administration.
