Canadian Prime Minister Mark Carney stated that provincial liquor store bans on American alcohol could be resolved "quickly" if the Trump administration takes steps to settle ongoing trade disputes. The provincial "Buy Canadian" measures have cost US booze-makers millions of dollars in lost sales.
Carney's Remarks on Trade Disputes
Speaking in Ottawa, Carney addressed the issue when asked whether he would urge provinces to put American spirits and wine back on store shelves. Several jurisdictions, including Ontario and Quebec, removed US alcohol products from government-run stores in response to Donald Trump's tariffs last year.
"Look, you know what's an irritant? 50% tariff on steel, 50% tariff on aluminum, 25% tariff on automobiles. All the tariffs on forest products. Those are more than irritants. Those are violations of our trade deal," Carney said.
US Threatens Enforcement Action
US Trade Representative Jamieson Greer threatened "enforcement action" against Canada over the alcohol bans on Wednesday. The provincial measures have significantly impacted American alcohol producers financially.
Carney explained that decisions about which alcohol brands appear on store shelves are ultimately made by provincial liquor boards, with influence from premiers such as Ontario's Doug Ford. The prime minister noted that Ford's position appears to have broad public support.
"Issues such as decisions on which alcohol to put on the shelves — we can make progress very quickly on that with progress in other areas," Carney said.
Ford's Stance
Ford, speaking on CNN, stated that after a "free and fair trade agreement" is struck, any boycotts "can come to a quick end. Everyone can thrive and prosper." Carney added that he is confident progress can be made.
However, Carney reiterated his view that the long era of deep economic integration between Canada and the US has ended, and that hoping for a return to the past is not a strategy. "They've changed. But we're looking to negotiate something mutually agreeable, and there will be adjustments there," he said.
USMCA Review
Carney also emphasized that the US cannot unilaterally set the terms for the upcoming US-Mexico-Canada Agreement review, scheduled for July 1. A member of his advisory committee on US trade, former Quebec premier Jean Charest, said Wednesday that the US is seeking concessions even before formal talks begin.
"There's two parties in a negotiation," Carney said. "We're not sitting here taking notes and taking instruction from the United States."
Ambassador's Optimism
Canada's ambassador to the US, Mark Wiseman, told a parliamentary committee that formal negotiations on renewing USMCA have not yet begun. However, he noted "ongoing discussions" regarding sectoral tariffs on steel, aluminum, autos, and lumber. Wiseman struck an upbeat tone, saying he is "optimistic" about the future of the Canada-US relationship. He noted that Canada currently benefits from a comparatively favorable arrangement, with many goods still crossing the border tariff-free under the USMCA framework.
