Canadian Prime Minister Mark Carney says his government is ready to sign a trade deal with the United States that benefits both countries, signaling a potential thaw in trade tensions that have disrupted North American supply chains and rippled through global markets, including the Gulf.
Carney told reporters in Thunder Bay, Ontario, that any agreement would need stability and credibility. ‘The deal that’s possible, that’s in the interests of Canadian workers, families and businesses, is also the deal that is in the interests of American families, American businesses, American consumers, and we’re ready to sit down and strike that deal when the Americans are ready,’ he said.
The comments come after trade negotiations between the US and Canada collapsed last month. Since then, the US has imposed 50 percent tariffs on $20 billion worth of Canadian goods, with Ottawa’s retaliatory tariffs on a similar amount taking effect next week. The US has also threatened 50 percent tariffs on all Canadian cars and car parts from January 1.
Carney suggested there had been a recent softening in the US approach, noting that several issues the Americans had insisted on were no longer being pushed. ‘Now, they’re not,’ he said. ‘So all of a sudden, they don’t care about Canadian language or culture and those elements. Well, if they didn’t care, they shouldn’t have kept them in the deal. It’s good. We welcome that.’
The trade tensions have had broader implications for global commerce. Gulf states, which have been working to diversify trade relationships amid the Iran war’s disruption to energy markets, have watched the North American trade dispute with concern. The UAE and Saudi Arabia have been expanding trade ties with both the US and Canada, and any escalation in North American tensions creates uncertainty for Gulf investors with exposure to both markets.
Carney also announced plans to spend 4.7 billion Canadian dollars ($3.4 billion) to build and maintain more than 300 Via Rail passenger rail cars in Canada, a shift away from importing them from the US. The move reflects Canada’s broader effort to reduce dependence on American manufacturing.
US export data shows the shifting relationship. Canada’s share of exports going to the US fell to 66.35 percent in July, down from 69.39 percent in June and 72.64 percent a year ago, according to Statistics Canada.
President Donald Trump responded on Truth Social, warning that Canada’s economy would collapse if its politicians continued to make him ‘the enemy.’ The exchange underscores the political tensions that continue to complicate trade negotiations between the two countries.
Sources: Al Jazeera, Statistics Canada
