Carney rejects U.S. claim that Canadian politics ended trade talks

OTTAWA – Prime Minister Mark Carney rebuffed U.S. Commerce Secretary Howard Lutnick’s recent comments that Canada pulled out of trade talks with the U.S. due to political reasons.

“I don’t think, with all respect, appointed, unelected cabinet members in the United States are experts on Canadian politics,” said Carney, during an announcement in Thunder Bay, Ont., on Thursday.

Carney was in the northern Ontario city announcing a $4.7-billion contract to build over 300 new Via Rail passenger rail cars.

The prime minister’s comments come after Lutnick claimed the reasons Canada blew up trade talks last month were “manufactured” and had to do with the Quebec provincial election and Alberta’s referendum.

Both the Canadian and American governments have blamed each other for the breakdown in negotiations.

Carney said several last-minute conditions on the U.S. side of negotiations made accepting a deal untenable.

He cited the addition of language on auto industry tariffs, such as a failure by the U.S. to reduce tariffs on heavy-duty trucks like the ones produced in auto plants in Southern Ontario. He also cited “efforts to restrict our protections of our language, our culture, and in effect, our sovereignty.”

Lutnick and United States Trade Representative Jamieson Greer have both said the French language provisions were not a red line for American negotiators.

On Wednesday, Lutnick told CNBC a Canadian minister did not deny it when asked if Canadian negotiators were trying to “blow up” trade talks on Aug. 21.

Lutnick also claimed Canada had made several last-minute demands of its own.

Carney said the Americans have changed their stances since negotiations halted.

“I’ll say one other thing, which is that there are a few issues that the United States was arguing right up to the last hour, red lines weren’t going to change, boom, it’s in there, you know, our way or the highway, take it or leave it, you know, attitude,” he said.

“Some of what they’re saying now is different than what they were drawing the line on, and we are always going to stand up for what’s in the best interest of Canada workers, Canadian families,” Carney added.

The prime minister said his government is not looking for an easy win, but said a deal is still possible with the U.S.

“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,” said Carney.

“We’re ready to sit down and strike that deal when the Americans are ready,” he added.

In addition to the Section 232 tariffs on Canadian steel, aluminum, autos and lumber, Canada also faces a 50-per-cent tariff under Section 338 of the Tariff Act of 1930, which applies to $28 billion worth of Canadian exports to the U.S.

In response to the Section 338 tariffs, Canada has promised to retaliate with tariffs ranging from 15 to 50 per cent on $27.6 billion worth of U.S. products, effective Sept. 8.

Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our newsletters here.