Trump's top trade negotiator disputes Canadian assertion that U.S. made last-minute demands

U.S. trade rep disputes why talks fell apart | Canadian exclusive

August 26|

Duration 16:53

The Trump administration's top trade negotiator on Wednesday disputed Ottawa's assertion that last-minute demands from the U.S. derailed a trade deal between the two countries, saying Canadian negotiators' concerns about the deal's "implementation" led Ottawa to pull the plug.

In an interview with CBC News, U.S. Trade Representative Jamieson Greer said the Canadian side had new requests when his counterpart, Canada-U.S. Trade Minister Dominic LeBlanc, returned from Ottawa after the tentative deal was struck on Aug. 18.

"We had agreed to, as I've shared before in the press, really the best deal available to any country on the planet with respect to Canada," Greer told CBC News chief political correspondent Rosemary Barton in his first one-on-one interview with a Canadian news outlet since trade talks broke down on Friday.

"When [LeBlanc] came back, they had some additional views. They had some additional requests. They had some additional things that were too much for the United States."

• What we know about how the Canada-U.S. trade talks fell apart

The ambassador said it wasn't clear when the two countries might return to the negotiation table. He confirmed he and LeBlanc were not in contact as of Wednesday.

"I would say we don't have open channels right now," Greer said. "I have a good relationship with Minister LeBlanc, but right now, I think the Canadian side is talking about their next steps."

WATCH | U.S. trade rep on whether discussions might resume:

What will it take to resume Canada-U.S. trade negotiations?

11 hours ago|

Duration 3:03

The remarks from Greer, the cabinet member in charge of delivering the president's tariff regime, make clear that the two countries disagree as to which is to blame for the breakdown in negotiations. Prime Minister Mark Carney was first to introduce the notion that last-minute changes scuttled the agreement, but said it was the U.S. that tried to make "unfair, uneconomic" adjustments that "called into question the reliability of any deal."

The White House has said Canada turned down a deal that would've included cuts to existing tariffs on steel, aluminum, lumber and Canadian-made automobiles.

On the topic of retaliation, Greer didn't rule out another tit-for-tat response from the U.S. after Canada announced dollar-for-dollar counter-tariffs against hundreds of American products to take effect after Labour Day. The levies are in response to the United States' latest round of tariffs, which began last weekend.

"If there's further retaliation from the Canadian side, of course, we're not going to just sit down and take that. Our view is, 'Don't retaliate,'" he said, speaking outside the White House. "I know how people are feeling in Canada and what they think. It's unfortunate, but it is what it is."

At a news conference on Saturday, Carney said the deal proposed by the U.S. ultimately would've encroached on Canada's ability to pursue trade agreements with other countries, threatened key industries and undermined French language protections.

"A good deal [became] a deal we would not accept," the prime minister said.

Neither government has released the text of the draft agreement, and both LeBlanc and Greer have cited confidentiality in response to questions around wider details.

Greer said the White House was prepared to lower the tariff on the majority of steel Canada sent to the United States from 50 per cent to 25 per cent. It would have been subject to a tariff-rate quota system, a provision meaning only a portion of steel imports receive that lower rate.

WATCH | Carney's full remarks on Saturday:

FULL SPEECH | Carney explains why Canada suspended trade talks with U.S.

August 22|

Duration 22:59

On Canadian-made vehicles, Greer said the rate would've been reduced from 25 per cent down to 15 per cent, with "the possibility of going down to seven per cent."

Sources told CBC News the auto tariff could have been reduced further by having more U.S. content, taking the effective rate down to 7.5 per cent. The Canadian side believed that offer was still not good enough, sources noted.

Greer denied that the White House had asked for a say in the trade deals Canada cuts with other countries. He said the administration wanted to prioritize co-operation, referring to the Fortress North America concept floated most prominently by Ontario Premier Doug Ford.

"We didn't have any text like that," Greer said Wednesday. "We talked about, let's co-ordinate on a bilateral basis, right? It wasn't, 'Canada shall' or anything like that. It's, 'Let's talk about this.'"

WATCH | U.S. trade rep on communication with his Canadian counterpart:

No open channel with Canada's trade minister, Greer says

11 hours ago|

Duration 0:17

On the issue of discoverability of French content on streaming services, Greer said it had been "highlighted" by the White House but not as a dealbreaker.

"President Trump, myself and the U.S. government recognizes the importance and sensitivity of the French language in Canada, in Quebec, in the Maritimes and some [other] areas. We know that this is quite sensitive and quite important," he said of French language protections.

"There is no way we would let a good deal go by for something like this. This is not something where we push hard or condition or red line. It's like the farthest thing from a red line."

The new measures and deteriorating political rhetoric from both sides of the border were a marked departure from the conciliatory tone last week, when the two countries appeared closer than ever to an agreement after months of tension.

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Last week, Greer and his Canadian counterpart appeared shoulder-to-shoulder in front of Greer's office, assuring the cameras they effectively only needed to cross T's and dot I's to get the agreement over the finish line. That night, U.S. President Donald Trump granted a tariff extension so negotiators could keep working for three more days.

But by Friday, the deal had fallen apart. Asked about last-minute demands in an interview with CNN this week, Trump said: "That sounds like me."

Greer said Wednesday that the president didn't interfere in the negotiations' dying days and described the remark as "off the cuff."

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August 25|

Duration 1:42:33

This week, Carney said Canada will return to the negotiating table when the American side comes back with "the right attitude." LeBlanc told CBC News he and his team won't "rush back to Washington" until they see an "economically viable" deal.

The prime minister said the government will instead focus its energy on pursuing trade relationships with global allies and shoring up the economy at home, moving Canada away from its reliance on the United States.

Carney made clear he would rather bear the consequences of a painful, drawn-out trade war than concede to the terms proposed by the White House.

"Some of the biggest payoffs of this plan, of this transformation, will take time," he said.