Lawmakers Meet in Ottawa to Ease Trade Tensions
Four influential U.S. senators met Canadian Prime Minister Mark Carney in Ottawa on Monday, July 21, as both countries seek progress on a looming trade and security deal. The talks come just days before an August 1 review of the United States-Mexico-Canada Agreement (USMCA), heightening urgency around long-standing cross-border tensions.
Focus on Softwood, Digital Tax, and Metal Tariffs
The meeting zeroed in on key trade issues including Canadian softwood lumber exports, proposed digital services taxes on U.S. tech giants, and ongoing tariffs on aluminum and steel. Senators Ron Wyden (R-Ore.), Lisa Murkowski (R-Alaska), Maggie Hassan (D-N.H.), and Catherine Cortez Masto (D-Nev.) represented a bipartisan delegation aiming to “build bridges” with Canada rather than fuel discord.
Carney Open to Compromise, Senators Optimistic
Wyden praised Carney’s willingness to delay implementation of the digital services tax and said the prime minister committed to pursuing legislation in the fall that could permanently shelve the plan. The tax had threatened to sour relations by targeting American digital platforms operating in Canada, potentially collecting billions in revenue.
Softwood Lumber a Priority in Talks
Trade friction over Canadian softwood lumber—long a thorn in bilateral ties—also appeared to move toward resolution. Carney floated the idea of export quotas to stabilize the market, a proposal echoed by British Columbia Premier David Eby. Wyden said both sides now “have a clear idea” to work around quota-based arrangements.
Tourism and Friendship Highlighted
Senator Hassan acknowledged declining Canadian tourism to U.S. destinations in light of economic uncertainty and Trump-era policies. “We miss your business, but more than that, we miss your friendship,” she told reporters, hoping Canadian visitors would return to New England and beyond.
Pushback on Annexation Rhetoric
When asked about former President Donald Trump’s repeated remarks suggesting Canada might be better off as the “51st state,” Murkowski dismissed them as political theater. “It’s positioning,” she said, emphasizing that both countries remain committed to mutual sovereignty and cooperation, not confrontation.
Next Steps Toward a Deal
With the August 1 USMCA review fast approaching, both sides are accelerating diplomatic efforts to finalize a refreshed agreement. Carney has now hosted nearly 10% of the U.S. Senate in Ottawa this year, underlining the strategic importance of the bilateral relationship. As one of North America’s most critical partnerships stands at a crossroads, momentum is building for a renewed era of cooperation.
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