US, Canada resume talks to finalize trade deal as details emerge

Canada's minister in charge of bilateral trade with its southern neighbor, Dominic LeBlanc, was in Washington Thursday to meet US Trade Representative Jamieson Greer.

"I am always looking forward to be back at work," he told reporters without going into details about the trade negotiations.

On Wednesday, both sides said they had moved close to a final agreement, a deal that could ease tensions following months of acrimony triggered by Trump's punishing tariffs.

A new spate of 50-percent US tariffs were set to take effect on Canadian imports on Wednesday, but Trump said the day before that he was delaying enactment for 72 hours as a deal looked close.

Details of the prospective agreement remain unclear, but Carney on Wednesday updated the leaders of Canada's provinces and territories on the negotiations.

Nova Scotia Premier Tim Houston told reporters Carney made specific requests that the United States wanted implemented by Canadian provinces.

Those include restocking US wine and liquor, which several provinces removed in retaliation for Trump's tariffs on Canadian autos, steel, aluminum and lumber.

"The prime minister has asked us, as premiers, as provinces, to return the US alcohol to the shelves," Houston said.

"It's been an irritant... that has kind of really bothered the United States," he added.

The leader of the Atlantic coast province noted that even if US alcohol returned to Canadian stores, there is no guarantee people will buy it, citing deep-seated frustration over Trump's treatment of Canada, including his repeated annexation threats.

Beyond the provisions in any trade deal, there's "the emotional impact of what Canadians have experienced," Houston said. 

"It has been emotionally draining and it has had an emotional impact that will last a long time."

Carney also asked provinces to ensure they remove any language in procurement policies that "specifically excludes the United States," Houston said.

Provinces could still favor Canadian suppliers, but cannot have direct language that precludes a US supplier from a project.

Houston declined to discuss any proposed US tariff reductions, but broadly said the agreement appeared to be "the best possible outcome we can hope for in dealing with this administration."

It also preserves "the core elements of supply management," he said, referring to the Canadian policy that regulates dairy and poultry supply, imposing prohibitive penalties on US suppliers above certain rates.

As part of the negotiations, the US likely has a range of demands of Canada's federal government, beyond the list of actions Carney requested from Canadian regional premiers. 

According to Canadian media reports, those include commitments on defense procurement and critical mineral supply.

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