A summit meeting between Canadian Prime Minister Mark Carney and U.S. President Donald Trump is looking increasingly unlikely, sparking concerns about the future of the North American free-trade pact.
Avoiding a Meeting, Not a Message
According to Canadian officials, the absence of a formal meeting between Carney and Trump at the G7 summit is not a sign of strained relations. “I wouldn’t see it as a snub,” said an unnamed Canadian government source.
The free-trade agreement between Canada and the U.S. has been a point of contention in recent months, with both sides struggling to reach an agreement on key issues, including dairy market access and pharmaceutical pricing.
Canada has been pushing for greater access to the U.S. market for its dairy and poultry products, while the U.S. has been seeking to reduce its reliance on Canadian-made drugs.
With the G7 summit drawing to a close, Carney and Trump are still set to discuss trade issues in a series of informal meetings, although the lack of a formal summit is seen as a setback for Canadian hopes of securing a deal.
What’s at Stake
The North American free-trade pact, known as the United States-Mexico-Canada Agreement (USMCA), is set to replace the existing NAFTA agreement in 2020.
If the agreement is not finalized in the coming months, it could have significant implications for the economies of all three countries, with potential losses for Canada in the range of $15 billion CAD ($11 billion USD) per year.
Canadian officials have been pressing for a deal that preserves key elements of the existing NAFTA agreement, including Chapter 19, which allows for the dispute settlement of trade-related issues.
Why It Matters
The lack of a formal meeting between Carney and Trump reflects the deep-seated tensions that have developed between the two countries over the course of the trade talks.
While the absence of a summit is a disappointment for Canadian officials, it’s unlikely to derail the trade talks entirely – for now, at least.
