Minister will not say if Liberals are open to renegotiate free commerce deal

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The overseas minister is ready to journey to Washington to fulfill with Secretary of State Marco Rubio on Wednesday

Revealed Jan 27, 2025 • Final up to date 0 minutes in the past • 3 minute learn

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International Affairs Minister Mélanie Joly attends a primary ministers assembly in Ottawa on Wednesday, Jan.15, 2025. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA — International Affairs Minister Mélanie Joly mentioned Monday the federal authorities is making ready for the 2026 evaluate of the free commerce settlement between Canada, the U.S., and Mexico, however is staying mum on whether or not Canada is prepared to open that deal up any earlier, as a option to mitigate U.S. President Donald Trump’s menace of tariffs.

Joly is ready to journey to Washington to fulfill with Secretary of State Marco Rubio on Wednesday, simply days earlier than the Feb. 1 date that Trump mused as his newest deadline for imposing a 25 per cent tariff on Canadian items, which he has been warning about since shortly after his election win final November.

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Citing considerations about folks crossing into the U.S. illegally from Canada, as effectively the stream of the lethal drug fentanyl from the Canada-U.S boundary, Trump’s threatening of tariffs has consumed Canadian enterprise and political leaders, who’ve been making their case on to Trump’s administration and throughout American airwaves that imposing such stiff levies can be unhealthy for each nations’ economies.

The federal government has additionally mentioned the Canada-U.S. boundary isn’t the issue with regards to Trump’s immigration and drug considerations.

Talking to reporters on Monday after members of Trudeau’s cupboard met to debate the state of affairs with the U.S., Joly mentioned Trump is utilizing tariffs “as a way to put pressure on countries,” including she expects him to proceed to take action.

Trump lately did so when he encountered points with Colombia accepting flights of migrants who’ve been deported from the U.S.

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The Canadian authorities’s first precedence is to stop any tariffs, Joly mentioned.

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Trump’s tariffs threats have additionally pushed debate within the Liberal management race to interchange Prime Minister Justin Trudeau. Former finance minister Chrystia Freeland mentioned Monday she would publish an inventory of $200 billion value of U.S. merchandise that may very well be vulnerable to retaliatory tariffs, whereas former Financial institution of Canada governor informed Radio-Canada that the nation needs to be open to curbing electrical energy exports to the U.S. in response.

A report by The Wall Avenue Journal final week mentioned Trump is vying for an earlier renegotiation of the free commerce settlement with the U.S., Canada and Mexico, which is at present scheduled for its first evaluate, set for July 2026. Upon taking workplace, Trump signed an government order instructing its commerce consultant to start consultations and for division heads to check how the commerce pact has impacted American staff throughout completely different sectors.

Requested whether or not Canada was prepared to renegotiate the deal to handle Trump’s ongoing commerce considerations, together with on an earlier timeline, Joly would solely say officers are working to make sure the nation is prepared for 2026.

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“What we learned about the (Canada-United States-Mexico- Agreement) at the time was it is important to have (a) process in place,” she mentioned Monday.

“We now have a process, the process is through the executive order and we’ll participate.”

She added: “The executive order already specifies that there is a process that prepares for eventually that renegotiation, which is set in 2026.”

Canada launched its personal set of public consultations on the deal final August.

Subsequent 12 months marks six years from when the present commerce deal Canada signed with the U.S. and Mexico got here into pressure in Canada. That settlement changed the North America Free Commerce Settlement, which the nations renegotiated to provide the up to date settlement, over considerations cited by Trump throughout his first time period in workplace.

Trudeau informed Ontario Chronicle final week that Canada negotiated for a evaluate to occur in 2026, calling it “a review”

Former Trump administration official Everett Eissenstat informed the broadcaster over the weekend that Canada ought to begin that evaluate immediately, given Trump has as soon as once more set his sights on the commerce deal.

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Throughout a digital speech to the World Financial Discussion board final week, Trump voiced considerations about having a commerce deficit with Canada, saying America didn’t want its oil, lumber or automotives.

The federal authorities has been pushing again on Trump’s assertions, saying greater than eight million jobs within the U.S. are related to commerce with Canada.

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