The United States and Canada could reach a trade agreement within a few months, and it is possible that this will happen before the US midterm elections on November 3. This was stated by US President Donald Trump in an interview with Fox 2 television.
“It could be a few months. It could happen sooner – even before the midterm elections“, Trump said. He added that he does not want a short-term result at any cost, but “the right deal“, which he said would be beneficial for the American side.
Negotiations have been interrupted
Trump's optimistic assessment comes amid serious tensions between Washington and Ottawa. Negotiations between the two countries collapsed in August after failing to reach an agreement on key issues in the trade relationship.
After the talks broke down, the Trump administration imposed 50% tariffs on some Canadian imports. Canada responded with retaliatory tariffs on American goods, further increasing the pressure on companies and manufacturers on both sides. The United States and Canada continue to trade under the current Agreement between the United States, Mexico and Canada, but a number of goods have already been hit by additional tariffs.
On October 23, Trump exempted some Canadian goods from 50% tariffs. The decision was presented as a help to American manufacturers and as an attempt to reduce political pressure related to rising commodity prices before the election.
Ottawa in no hurry with the agreement
Canadian Prime Minister Mark Carney said that his country does not urgently need to sign an agreement with the United States. According to Reuters, he even suggested that Ottawa could wait until the end of Trump's term if Washington's terms remain unacceptable.
The American president did not specify specific parameters of the future agreement, nor a date for the resumption of official negotiations. Thus, the term "several months" remains a political forecast, not a commitment made by the two governments.
Sources: apnews.com, marketscreener.com, fox2detroit.com