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Canadian Prime Minister Mark Carney is visiting Washington for the second time this year. The focus of this visit is to work on trade talks that have been delayed over the summer. Canada is the only G7 country that has not reached a trade deal with the US this year.
Negotiations have surpassed the August deadline set by the leaders, with few details disclosed about the discussions. Ottawa is not in a hurry to finalize a deal due to exemptions under the US-Canada-Mexico Free Trade Agreement.
Trade Minister Dominic LeBlanc mentioned progress towards an agreement, hinting at potential relief from US steel tariffs. However, there is frustration over the lack of clarity from the White House on the terms of a trade and security deal with Canada.
Carney's office described the visit as a "working visit" to find common ground on the economy and security. The meeting is not expected to yield major breakthroughs, according to White House officials.
Trump has hinted at making Canada a US state, while Carney's opposition leader emphasized the importance of reaching a trade deal during this visit. The prime minister faces pressure domestically to secure a deal that would lower tariffs, particularly for sectors like steel and lumber.
Carney has made concessions to keep trade talks going, such as ending a Digital Services Tax disliked by Trump and dropping most retaliatory tariffs on the US. Despite challenges, Carney has maintained a positive relationship with Trump.
The US is considering separate reviews of the USMCA free trade agreement with Canada and Mexico. Washington aims for a comprehensive deal with Canada covering trade and defense. Trump's demands for Canada to become the 51st state are seen as posturing, but experts believe they reveal the leverage he holds in negotiations.
Carney's efforts to engage with Trump come as Canada faces pressure to secure a deal to protect its economy, heavily reliant on trade with the US. The government is aware of the potential impact of full-force US tariffs on the Canadian economy.