Canada, U.S. exchanging potential terms on economic and security deal
Canada and the United States are exchanging potential terms of agreement in closely held talks on an economic and security deal, The Globe and Mail has learned, but these do not represent the draft text of an actual pact.
These exchanges are an effort to spell out what both sides might be able to agree upon as Ottawa and Washington try to find enough common ground to end their damaging trade war, sources said.
The Globe is not naming the sources because they were not authorized to speak publicly.
It's also far from clear whether a deal will be landed anytime soon as the United States is negotiating with close to 20 other countries that are seeking relief from tariffs U.S. President Donald Trump has imposed on their products.
One government official compared the documents being exchanged to term sheets in the corporate sector, which outline the ingredients of a possible deal and serve as the basis for negotiations.
Canada and the U.S. are engaging in talks on a new economic and security relationship that could amount to the first phase of talks with a second phase being the renegotiation of the trilateral United States-Mexico-Canada Agreement possibly to follow as already scheduled in 2026.
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The economic-defence talks are being conducted among a very small circle of officials including International Trade Minister Dominic LeBlanc, Canada's ambassador to the United States Kirsten Hillman, U.S. Commerce Secretary Howard Lutnick and Jamieson Greer, the United States Trade Representative. It's possible this deal may be an executive-handshake agreement such as the one the British government signed with the White House in May.
Sources said Canada and the United States are talking about working together to counter China's unfair trade practices, a topic that could affect U.S. tariffs on Canadian steel and aluminum, and further border security arrangements to stop the illegal distribution of the opioid fentanyl. The United States also wants Canada to take a great role in securing the Arctic and join Mr. Trump's ambitious Golden Dome missile shield project – a project Prime Minister Mark Carney has publicly said would make sense for Canadians to be part of.
They said each side is putting ideas on paper and sharing them as part of the talks.
CBC News on Friday reported it had learned of the existence of a working document outlining details of a potential deal. CBC, citing an unidentified source, said the working document states that Canada is willing to participate in the Golden Dome security program, and it also mentions Canadian commitments to build more infrastructure in the Arctic, Canada's pledge to meet its NATO defence spending targets, as well as previously announced border security investments.
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