Carney: Trump Moving Closer to Demands 10/27 06:21

   

   TORONTO (AP) -- Canadian Prime Minister Mark Carney said Monday that trade 
talks with U.S. President Donald Trump's administration have picked up 
slightly, but any progress is because Washington is moving closer to Canada's 
demands.

   The comments come eight days before U.S. midterm elections, with White House 
economic adviser Kevin Hassett suggesting the countries are close to a deal.

   "To the extent any progress has been made, it's because the U.S. is coming 
closer to our position," Carney said.

   Trade Minister Dominic LeBlanc's office said Canada remains in "constructive 
dialogue" with Washington.

   Carney described a "slight, slight intensification" of discussions but said 
Canada's negotiating position remained unchanged.

   Carney acknowledged he cannot be sure Trump would honor a new trade 
agreement. Asked whether the president would "sign in pen" after Carney 
previously warned that Washington's signature was sometimes "written in 
pencil," he replied: "I don't know that."

   Canada rejected Washington's terms in August after the countries appeared 
close to a deal. Carney said the offer crossed Canadian "red lines." Trump 
subsequently imposed 50% tariffs on roughly $20 billion in Canadian goods, 
prompting retaliation and further trade restrictions.

   Trump said Friday he would lift some 50% tariffs on Canadian goods while 
imposing new tariffs on dozens of other products. Two days later, he told a 
Michigan campaign rally that Canada was "willing to give us anything at this 
moment" and that a deal would be settled "pretty soon." He told a Detroit 
television station an agreement could come before the midterms, although it 
might take months.

   Trump's tariffs have become an issue in closely watched Senate races. 
Republican candidate Mike Rogers says in a Michigan campaign ad that Canada is 
"not our enemy" and "we need to end this tariff war now." In Maine, Republican 
Sen. Susan Collins pressed the Trump administration to ease tariffs on Canadian 
goods used by farmers and other businesses, with Washington announcing 
exemptions Friday.

   Trump has repeatedly complained about the U.S. trade deficit with Canada, 
but energy more than accounts for the gap. The United States buys millions of 
barrels of Canadian oil daily, typically at a discount, and runs a trade 
surplus with Canada when energy is excluded.

   Trump also wants automakers to move production from Canada to the United 
States, threatening an industry deeply integrated across the border for decades.

   Trump's trade war and repeated threats to make Canada the 51st U.S. state 
have pushed Carney to seek new markets, with a goal of doubling Canadian 
exports outside the United States over the next decade.

   Carney hosts European Union leaders Thursday and Friday in Montreal to 
pursue closer economic and security ties. European Commission President Ursula 
von der Leyen has proposed making Canada the EU's first associate member, a 
status that has yet to be defined.