Canada to begin formal talks with U.S. in January on review of free trade deal

The prime minister has said trade irritants flagged by the U.S. are elements of a “much bigger discussion” about continental trade.

Carney says he sees “tremendous benefits” for Canada and the U.S. if they work co-operatively in key economic sectors.

Washington’s trade representative says a coming review of the Canada-U.S.-Mexico trade deal, also known as CUSMA, will hinge on resolving concerns about Canadian policies on dairy products, alcohol and digital services.

In a statement this week to a congressional committee, U.S. Trade Representative Jamieson Greer said the American side has concerns about access to Canada’s dairy market and Canada’s exports of certain dairy products.

Greer also pointed to the effects of the Online Streaming Act and Online News Act on U.S. digital service providers, as well as procurement measures in Ontario, Quebec and British Columbia.

He cited concerns about provincial bans on the distribution of American alcohol that were imposed in response to a barrage of U.S. tariffs on Canada following the re-election of President Donald Trump.

The United States also has a list of grievances about its trade with Mexico related to supply chains, energy policies and labour and environmental laws.

Greer said his office will engage with Canada and Mexico to determine which issues can be addressed on a bilateral basis and which require the efforts of all three countries.

Carney said Thursday that Canada has been clear about its intention to protect the supply management of agricultural products.

“We continue to stand by that,” he said at a news conference in Ottawa with Ontario Premier Doug Ford.

Carney said Ottawa sees “tremendous benefits” for Canada and the United States in pooling resources where possible — for example, in the auto, steel, aluminum and forest product sectors.

“We will enter those discussions on the review of CUSMA In that spirit,” he said.

Following Trump’s 2024 U.S. election win, the White House expressed concern about the southbound flow of fentanyl and irregular migrants into the United States — criticism it used to justify tariffs against Canada.

Carney hoped to forge a new economic and security partnership with Washington following the Liberals’ general election victory in late April.

Trump said in October he was halting trade talks with Canada over an anti-tariff ad aired in U.S. markets by the Ontario government.

Carney said Thursday that Canada and the U.S. were close to an agreement at the time on sectoral tariff relief in multiple areas, including steel, aluminum and energy.

The prime minister said he expects those talks to now roll into the broader CUSMA negotiation — but he left the door open to the resumption of more focused talks in these sectors.

“If the United States wants to come back on that in those areas, we’re always ready there,” he said.

Carney added that Canada is “very ready” to strike an agreement on forest products with the United States, which is having “affordability challenges, including in the housing sector.”

“We can make an immediate difference to affordability in the United States to the benefit, yes, of Canadian workers, but also to American consumers,” he said.

Ford stood by the decision to run the anti-tariff ad, saying it was viewed widely in the United States and calling it “the best ad that’s ever been run.”

“I’m speaking for the people of Ontario. We’re getting hit the most out of any single province in this entire country,” Ford said.

“I’m not going to sit back and roll over. I’m going to continue fighting to make sure we get a fair deal with the U.S.”

This report by The Canadian Press was first published Dec. 18, 2025.

— With files from Aaron Sousa in Edmonton and The Associated Press

Jim Bronskill, The Canadian Press

by The Canadian Press

Canada to begin formal talks with U.S. in January on review of free trade deal

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