Carney reports progress in U.S. trade talks but says auto sector remains key

Canadian Prime Minister Mark Carney said Saturday, November 14, that trade talks with the United States were advancing, although the two governments had yet to reach an agreement after months of tariff disputes. Speaking to reporters in Manila, he identified the future of Canada’s automotive industry as a central issue still under negotiation.

Carney said he had spoken with President Trump shortly before traveling to the Philippines for the three-day summit of the Association of Southeast Asian Nations, known as ASEAN. U.S. Trade Representative Jamieson Greer, White House chief of staff Stephen Miller and other officials also participated in the conversation, which Carney described as lengthy and substantive.

While expressing optimism about the discussions, Carney said Canada would not accept an agreement that failed to support a viable domestic auto sector. He emphasized that American vehicle manufacturing depends in part on its integration with Canadian industry. “This is one of the most challenging issues in the trade negotiations,” he said, adding that progress had not yet produced a resolution.

The negotiations follow a breakdown in August, when Canada left the talks after what Carney described as last-minute demands from the Trump administration that Ottawa would not accept. Washington subsequently imposed tariffs of 50 percent on Canadian exports worth $20 billion. Canada answered with retaliatory tariffs, and its officials pledged to match the value of the U.S. duties.

Carney discussed the renewed negotiations ahead of the ASEAN gathering in Manila, where Trump was also scheduled to appear. Despite the unresolved differences, the prime minister said a bilateral trade agreement remained possible. His comments indicated that discussions were continuing, but he stopped short of saying the countries were close to a completed deal.

At the same press conference, Carney announced two Canadian deals with ASEAN and the Philippines aimed at lowering Canada’s dependence on trade with the United States. He presented the agreements as part of a broader effort to build relationships with reliable partners, expand opportunities for Canadian businesses, increase consumer choice and provide better jobs.

Carney also said his government was moving faster than planned toward its goal of doubling exports to markets outside the United States in less than a decade. According to the prime minister, destinations beyond the U.S. now account for almost one-third of Canadian export dollars, the highest share in 40 years.