PM Carney and President Trump are in direct talks for a new Canada-U.S. trade deal, with sectors like auto, AI, and defence likely to be included.
High-Level Talks Spark Trade Deal Buzz
Prime Minister Mark Carney and U.S. President Donald Trump are reportedly holding direct talks about a new trade agreement between Canada and the United States. The update was confirmed by U.S. Ambassador to Canada Pete Hoekstra during a fireside chat on Wednesday at the Canadian Club of Ottawa.
He described the discussions as heading in a “very positive” direction but stopped short of confirming any concrete details. “Until a deal is announced, we won’t know what’s in it and we won’t know if it’s finalized,” Hoekstra said in conversation with journalist Mercedes Stephenson.
Signs Point to Progress, But No Certainty
When asked about reports from CBC News on a draft agreement circulating between Ottawa and Washington, Hoekstra declined to confirm or deny its existence. His cautious tone suggested that although progress is being made, any deal remains unofficial for now.
Behind-the-Scenes Efforts Attract Political Interest
The Globe and Mail first broke the story, revealing that Carney and Trump were in discreet discussions. Ontario Premier Doug Ford later supported the claim, stating the two leaders were in “deep, deep discussions.” However, Canada’s Industry Minister Mélanie Joly refused to provide confirmation, citing the need for diplomatic discretion.
Trade Deal May Cover Key Economic Sectors
While no formal agreement has been released, Hoekstra hinted at which sectors could be central to the deal. Auto manufacturing, critical mineral supply chains, and artificial intelligence are high on the list. “Canada is a reliable partner,” he said, underlining the shared economic interests between the two countries.
Energy cooperation may also be part of the package, reflecting both nations’ push for resource security.
Deal May Expand Into Defence and Border Security
Beyond trade, the talks may include defence coordination and border enforcement. Canada’s recent $9 billion military spending plan aligns with NATO goals and could strengthen defence ties with the U.S.
At the same time, Canada has introduced a border security bill aimed at tightening asylum processes and reducing fentanyl trafficking—two priorities also central to American security policy.
Political Momentum Could Accelerate Timeline
Ambassador Hoekstra emphasized the urgency of the talks, saying both leaders want fast results. “These are two leaders in a hurry to get things done,” he said. Though no official deadline has been set, the pace of dialogue suggests that a major agreement could be announced within months.
Such a deal could significantly reshape trade, technology, and security across North America.
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