Business leaders were hope that the White House meeting between Prime Minister Mark Carney and the president of the United States, Donald Trump, provided a framework on how commercial conversations can progress.
After the two leaders spoke in the Oval office, an unlikely winner seems to be emerging: the Canada-Usexic trade agreement (Cusma or USMCA, as it is called in the United States).
At his Oval office meeting with Carney, Trump was asked if USMCA is dead.
“No, it was really very effective and it is still very effective. But people have to follow it. That has been the problem, people have not followed it,” Trump said.
In the next breath, he reflected that the trade agreement was a transition step that may not be necessary in the future.
But his hug of the agreement could be sufficient to restore the parameters of the United Canadian-United States commercial conversations.
“I think the president has opened an open door and we need to drive it,” said Goldy Hyder, president of the Canada Commercial Committee.
Cusma covering
From the outbreak of the commercial dispute, Hyder has repeatedly said that Cusma is the best mechanism to resolve the conflict. He says that many Canadian companies did not have to take measures to comply with Cusma because they were given the status of “more favored nation” under previous commercial agreements.
Trump has repeatedly accused Canadians of cheating. And some say that having so many products that do not meet Cusma add fuel to that.
RBC Economics says that the vast majority of Canadian exports could comply with Cusma if the companies went through the process.
“According to our count, more than 94 percent of Canadian exports to the United States probably comply with Cusma’s rules of origin,” wrote the deputy director of RBC Nathan Janzen.
Power & Politics’s host, David Cochrane, broken down what happened when Prime Minister Mark Carney met with US President Donald Trump in the Oval office in front of journalists, from the tone of the meeting to what was said.
Hyder says that going through the process of ensuring that most Canadian products really comply with the new agreement, unlike the old agreements, will help to calm some of the White House concerns.
He says the message was high and clear for the president during his public statements with Carney.
“A very public recognition that the best way to follow is through the USMCA,” said Hyder.
He says that frameing the dispute through Cusma also serves to contain part of the volatility associated with the rates and threats that emanate from the White House.
An opportunity for Canada?
A problem so far has been the extensive nature of the president’s complaints.
Trump has criticized everything from cars and steel to energy and turning Canada in state 51.
The problems were so large and so varied that it was difficult to see how the dispute could end.
The old trade of Canada-United Veterans united did not expect Trump to leave the meeting with Carney as a defender of the commercial agreement.
“I was quite surprised that President Trump defended Cusma as a good business,” said former long -standing diplomat and politician Frank McKenna.
That could be advantageous, since Canada has problems also wants to solve, according to McKenna.
“We need to understand that this is a bidirectional negotiation,” said McKenna.
Carney highlighted a problem near the top of that list, since he told Trump Canada that he also wants some changes in the agreement.
“Part of the way you have made these rates has taken advantage of the existing aspects of USMCA,” he told Trump.
Possible following steps
Companies and commercial associations have repeatedly told politicians who find a way to make conversations move.
The uncertainty caused by tariffs is weighing business investment in both countries. Rates themselves are damaging companies throughout the continent.
At first glance, commercial associations seemed optimistic after the meeting at the White House.
The Canada Chamber of Commerce said a relationship restart was very necessary. President and Ceo Candace Laing said he was impressed with the tone of the meeting and the feeling of impulse he gave.
“Our two countries that work and do things together will be mutually beneficial in the coming decades, if we can maintain discussions like today,” Laing said in a statement on Wednesday.
The question is how to make negotiations really move.
“We agreed to have more conversations in the coming weeks and we hope to meet in person at the G7 summit in Kananaskis in Alberta,” said Carney.
https://www.youtube.com/watch?v=ycnmlnbzlka
Cusma is not supposed to renegotiate until 2026. But Hyder and others say there is no need to wait. In fact, Hyder says that Carney should suggest a meeting in Canada, Mexico and the United States outside the G7 to begin those conversations.
“Call them to G7, have a summit of leaders of North America of the sidebar, get on the agenda: Where are we going from here?” Hyder says.
A key question that persists about the commercial war has been how an exit ramp could be.
In the White House this week, Trump presented a clear path. You can change your mind; The president has a volatile nature.
But Hyder says that Canada simply cannot let the opportunity to make conversations pass.
