HomeEconomy'We have a normal trade conflict': Trump touts 'a lot of progress'...

‘We have a normal trade conflict’: Trump touts ‘a lot of progress’ in relations with Canada but offers no concessions

The US president promised that he and Prime Minister Mark Carney would get “the right deal” for Canada, while relations between the two countries have been tense for several months.

Donald Trump appeared very friendly this Tuesday with the Canadian Prime Minister, Mark Carney, and praised “a lot of progress” in the difficult trade negotiations between their two countries, but without offering concrete concessions. “I liked him from the beginning and we have a good relationship. We have a normal trade conflict but we will probably resolve it,” said the US president in the Oval Office.

Although he profusely congratulated his guest, the Republican leader could not help but joke again about a “merger” between both countries, a scenario that he has mentioned several times and that Mark Carney flatly rejects. “We are going to get the right deal” for Canada, the Prime Minister said, as the trade war led by the Trump administration has deeply disrupted bilateral relations and weakened the Canadian economy.

Like most foreign leaders welcomed by the impulsive Donald Trump, Mark Carney tried to put him in a good mood. And this as soon as he arrived at the White House, on his second visit since his election in the spring. “I wear red for you,” joked the Canadian leader, who was wearing a red tie, as he shook the hand of the American president, for whom it is the emblematic color.

Golden Dome

He also called Donald Trump a “transformative president” and praised his mediation efforts in several conflicts, a favorite topic of the Republican billionaire. The US president assured that Tuesday’s debate will also focus on the US anti-missile shield, the “golden dome.” Last week, he said that if Canada became the 51st state in the United States, it would “get this protection for free.”

Unlike other major US allies, including the European Union, Canada has not yet concluded a comprehensive trade deal with its neighbor and major economic partner. The stakes are high for the country, whose 75% of its exports go to its southern neighbor, and which saw its GDP fall by around 1.5% in the second quarter.

On the other hand, the American president considers himself in a position of strength. It has already imposed tariffs on the Canadian lumber, aluminum, steel and automobile sectors. On Monday it added heavy vehicles imported into the United States, taxed at 25% starting Nov. 1. And if the vast majority of trade remains protected by CUSMA – a free trade agreement between the United States, Canada and Mexico – it will soon have to be the subject of new negotiations and Donald Trump wants to revise the conditions to further favor American manufacturers.

Pressure on Carney

In this context, former central banker Mark Carney, who entered politics less than a year ago, faces growing criticism. He campaigned explaining that his extensive experience in crisis management made him the ideal candidate to defend Canada. Six months later, “pressure is increasing to obtain at least a reduction in certain customs duties, such as those on steel and aluminum,” explains Daniel Béland, a political scientist at McGill University in Montreal.

“Mark Carney has no other option, he must return from Washington with progress,” adds the professor, recalling that the Prime Minister has accepted several concessions without obtaining anything in return for the moment.

At the end of June, Mark Carney canceled a tax on American technology giants under pressure from Donald Trump, who considered it “scandalous.” It also eliminated much of the customs duties introduced by the previous government. Washington’s lack of reaction to these opening gestures provoked strong criticism from the opposition in Canada. “If you only come back with excuses, broken promises and photographs, you will have failed our workers, our companies and our country,” Pierre Poilievre, leader of the conservative opposition, wrote in a letter to Mark Carney on Monday.

Author: PL with AFP
Source: BFM TV

Stay Connected
16,985FansLike
2,458FollowersFollow
61,453SubscribersSubscribe
Must Read
Related News

LEAVE A REPLY

Please enter your comment!
Please enter your name here