Canada must act swiftly to counter a growing perception in Washington that it is stalling trade negotiations, according to Quebec's representative in the talks.
Quebec Envoy Speaks Out
Louise Blais, appointed last month as Quebec's envoy for the Canada-U.S.-Mexico Agreement (CUSMA) review, said that 'an impression has set in, in D.C. — for right or wrong — that Canada is looking elsewhere, and that we’re slow-walking this.' She made the remarks on the sidelines of a policy conference in Toronto on Thursday.
Eroding Goodwill
Blais emphasized that this perception is undermining crucial goodwill with Canada's most important trading partner. 'I think that’s eroding important goodwill that we must maintain. This is our No. 1 customer. It’s a partner,' she said. However, she rejected the idea of unilateral concessions to jumpstart talks with the Trump administration, stating, 'We’ve done enough of those.'
Background of Trade Tensions
Since becoming prime minister last year, Mark Carney has made several concessions to the White House, only to face escalated demands. In June, Canada dropped its digital services tax, a major irritant to the U.S. Weeks later, Trump raised tariffs on Canadian goods anyway. Carney then removed many retaliatory tariffs, but Trump still broke off negotiations on a metals tariff deal in October, citing anger over an Ontario government television ad.
Since then, high-level discussions between Canada and the U.S. on resolving trade frictions have been limited.
Expert Opinions
Steve Verheul, Canada's chief trade negotiator during the original CUSMA talks in Trump's first term, said the Carney government should not make further concessions without reciprocal benefits. 'We should never contemplate doing that kind of thing at all,' he said.
Verheul noted that many U.S. complaints, such as dairy barriers and provincial bans on American alcohol, could be resolved toward the end of the CUSMA review. Larger issues include U.S. tariffs on steel, aluminum, and autos, as well as the Trump administration's push for a common North American policy on investment and tariffs for strategic industries.
Geopolitical Challenges
The U.S. aims to 'keep China out, by and large,' putting Canada in a difficult position. Carney has responded to U.S. protectionism by forging closer ties with other nations, including a limited tariff pact with China and efforts to strike deals with India, Mercosur nations, and other partners.
