Canada had a positive meeting with the US on free trade talks, Canadian minister says

Chief negotiator Charette said the best outcome would be one in which Canada has "the lowest possible tariffs on the narrowest ⁠basket of goods with the most market access for Canadian products and that we do this in a way that preserves the value of the USMCA." TALKS UNFROZEN As part of talks with Mexico last week, the U.S. Trade Representative's office ​revealed it wants all North American-built cars and trucks to contain 50% U.S. content by value, bringing the regional total to 82%.

Canada had a positive meeting with the U.S. on the review of their free trade deal, Canada's minister responsible for Canada-U.S. trade, Dominic LeBlanc, said in Washington on Tuesday, but declined to provide many details.

LeBlanc, who met with U.S. Trade Representative Jamieson Greer along ‌with Canada's chief trade negotiator, Janice Charette, did not comment on when formal negotiations between the two countries will start. "We presented a number of specific proposals to Ambassador Greer that we think are good in the broader context of the North American economy and respond to some longstanding issues that the United States has raised with us," he said, adding he will be in touch with Greer next week.

"I remain optimistic about the ‌work that we can do with the Americans ... and we have a lot of work to do between now and July 1," he said. Canadian Prime Minister Mark Carney has tried to diversify trade and ‌make new global alliances, but Canada's economy remains heavily dependent on the U.S. with nearly 70% of its exports heading south of the border. Despite a raft of tariffs on some Canadian sectors, almost 90% of its products are entering the U.S. duty free.

Greer met Mexican officials last week for bilateral talks on the USMCA review and raised several issues, while Canada was left out of the discussions. "This trip has not been without some turbulence," LeBlanc told reporters from the terrace of the Canadian embassy in Washington, ⁠overlooking the White ​House.

"Where there's turbulence, you don't take your seat ⁠belt off and run up and down the aisle and kick in the cockpit door," he said, adding his team is focused on the outcome. Chief negotiator Charette said the best outcome would be one in which Canada has "the lowest possible tariffs on the narrowest ⁠basket of goods with the most market access for Canadian products and that we do this in a way that preserves the value of the USMCA."

TALKS UNFROZEN As part of talks with Mexico last week, the U.S. Trade Representative's office ​revealed it wants all North American-built cars and trucks to contain 50% U.S. content by value, bringing the regional total to 82%. But there was no provision for counting Canadian automotive content, ⁠people familiar with the proposal told Reuters.

The U.S. and Mexico have scheduled two more negotiating rounds in June and July, but no plans for bilateral or trilateral talks with Canada have been announced. Canada sent a letter to the U.S. and Mexico on Tuesday outlining its ⁠recommendations ​to renew a trilateral trade agreement for 16 years while seeking parallel talks on sectoral tariffs ahead of the meeting between Canadian and U.S. trade negotiators later in the day.

The U.S. has imposed tariffs on steel, aluminum and autos that have hurt Canada's economy. LeBlanc said that in his meeting with Greer he raised the issue of sectoral tariffs.

Canada sent the letter one day after Mexico's economy minister reiterated the country's ⁠support for extending the trilateral trade agreement, underscoring the importance of "providing certainty to investors who seek the strength of our market." Mexico’s position is to "pursue arrangements that benefit all three nations with mutual respect and ⁠consensus," Marcelo Ebrard wrote in a letter to Greer and ⁠LeBlanc that is widely seen as supporting Canada's inclusion in the talks.

Trump suspended all talks with Canada late last year after the province of Ontario aired an advertisement featuring former President Ronald Reagan warning that tariffs lead to trade wars. When asked if the talks that were suspended are now on, LeBlanc said ‌yes. "Consider them unfrozen," he said.