Canadian PM Says US Has Eased Trade Demands, Offered More Concessions, but No Deal Yet

The US and Canada have resumed trade talks, with prospects for an agreement improving as Washington softens some of its earlier demands.

Bloomberg reported on November 3 that Canadian Prime Minister Mark Carney, speaking to reporters in Antigua and Barbuda during a visit for the Commonwealth Heads of Government Meeting, said the US is asking for less than before while offering more concessions.

Carney said issues that Washington had previously pressed in negotiations are no longer part of the talks. They include protections for the French language and culture, Canada's sovereignty, and Ottawa's authority to strike trade agreements with third countries. He added that differences remain on some key issues, meaning further discussions are needed before a final agreement can be reached.

Trade tensions between the two countries escalated after US President Donald Trump returned to office and signaled plans to impose tariffs. In August, negotiations aimed at easing tariffs and trade barriers came close to a deal but fell apart. The two countries later imposed 50% tariffs on some of each other's goods.

More recently, both leaders have sounded upbeat about progress in the talks. Trump said on November 3 that the US would soon reach a good trade agreement with Canada. He also mentioned duty-free access for Canadian fertilizer and a proposal under which Canada would bear the cost of building a pipeline linked to the US.

Canada, however, does not currently impose a separate export tax or tariff on potash, a fertilizer ingredient it ships to the US in large volumes. The pipeline project Trump referred to also involves private investors, and South Bow, the Canadian company tied to the project, is targeting a final investment decision next year.

Autos remain a major issue in the negotiations. The US and Canada have long shared an integrated auto production network, but Trump has taken a negative stance toward auto imports from Canada. Carney did not specify how much progress had been made in the auto discussions.