Free trade carveouts key in potential deal between U.S. and Canada: business groups
Business leaders and academics say they hope to see Canada and the U.S. maintain free trade protections for most goods once an agreement is reached, even if the negotiations can't stave off certain sectoral tariffs.
It's unclear if the two countries will stick to the Aug. 1 deadline for wrapping up talks, as Prime Minister Mark Carney said Monday negotiations were in an "intense phase" but U.S. President Donald Trump told reporters last week that Canada wasn't a priority for his administration.
Whether a deal is announced Friday or later, Canadian Federation of Independent Business president Dan Kelly says his organization's members feel "a good chunk" of trade must remain tariff-free in order for talks to be considered successful.
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He says it wouldn't be a win for Canada if the trade agreement ends up looking similar to the deal struck by the U.S. with the European Union on Sunday.
That framework imposes a 15% tariff on most goods imported into the U.S., including European automobiles, and no carveouts for key products like pharmaceuticals and steel.
Kelly says Canadian business leaders will also be watching to find out what levies will remain on imports from the U.S., noting Canada's ongoing retaliatory tariffs "are really crippling small businesses even more than the U.S. tariffs."
