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Canada-united states: how negotiate without:
On July 10. Meanwhile, when the deadline for negotiations for a commercial agreement between Canada and the United States approached rapidly, the Trump government chose to send a letter threatening to impose customs tariffs of 35 % from 1is august. However. Moreover, by abandoning the digital services tax at the end of June, the Carney government seemed to have already made a major concession. Consequently, Although the commercial relationship with the United States is crucial. However, Canada has the difficult task of negotiating an agreement with an interlocutor who is no longer trustworthy.
A surprising threat – Canada-united states: how negotiate without
The letter sent by President Trump is added to a series of 14 letters articulating various tariff. Meanwhile, threats to so many countries since July 7. However, it can surprise for two reasons. However, First, the other letters are directly linked to an American measure canada-united states: how negotiate without that Canada had been spared. Furthermore, Last April. by adopting a rather eccentric mathematical formula, the Trump government had imposed “reciprocal prices” on several countries varying between 11 % and 49 %. These prices had then been suspended for a period of 90 days. in order to allow the negotiation of several bilateral agreements.
Countries targeted by new pricing threats scheduled for the 1is August therefore seem to be those on which the United. States wants to put pressure to advance negotiations. Since Canada was not the subject of these reciprocal prices. negotiations with the United States followed a different deadline, the inclusion of Canada in the same boat as the other countries is surprising.
Second, the 35 % customs tariffs he threatens to us are particularly high. Admittedly. several elements concerning the threat to Canada will have to be clarified, in particular with regard to the application of these prices for canada-united states: how negotiate without goods in accordance with the original rules of the Canada-United States Agreement. If the United States chooses to apply the same exemption as that which is currently applied to customs prices of 25 % imposed in order to fight against the entry of Fentanyl on their territory. certainly, the impact will be less.
However. with a rate of 35 %, the threat is much higher than that uttered towards Japan and South Korea (both targeted by a price of 25 %). Canada is thus joining countries like Bangladesh (35 %), Serbia (35 %), Cambodia (36 %) and Thailand (36 %). Laos. Myanmar face even higher threats (40 % each), but these prices still represent a decrease compared to “reciprocal prices” announced last April (48 % and 44 %, respectively).
Caution with concessions
In such a context, Canada must be particularly careful about the concessions it makes to the Trump government. Only two canada-united states: how negotiate without countries-the United Kingdom. Vietnam-have managed to conclude agreements with the United States, and the benefits of it are limited. For example. in order to avoid a price of 25 % on cars, the United Kingdom has concluded an agreement which provides for a tariff of 10 % for the first 100,000 cars imported into the United States. Beyond this annual quota, the 25 % rate is again applicable. With regard to prices that could be adopted for national security reasons. the understanding with the United Kingdom simply provides for future negotiations in order to take into account the American claims.
In addition. the customs tariffs imposed in Canada to counter the entry of Fentanyl into American territory are based on the International Emergency Economic Powers Act. However, a decision of an American court invalidated all the prices imposed according to this law last May. This decision is the subject of an canada-united states: how negotiate without appeal.
Although it is difficult to anticipate the result in this case. Canada should keep in mind that the most recent Trump pricing threat is based on very fragile foundations in US law. Even if confirmation of the illegality of the prices imposed in Canada did not make it possible to avoid certain prices adopted for national security reasons (including prices on steel. aluminum), too generous concessions could ultimately prove useless.
Even with a commercial agreement by the 1is August. trade between Canada and the United States would visibly return to the context that prevailed before January 2025. Above all. a commercial agreement that requires future negotiations for future prices would not be able to end the uncertainty that currently characterizes economic relations between Canada and the United States.
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Further reading: Ready to leave Quebec to accelerate the arrival of its spouse due to the cessation of the family reunification program – Cars will be excluded from the Mendel viaduct for the tramway – Let’s not fall into the trap – Canada Junior team: Dale Hunter is back as head coach – Carney will summon his cabinet on Tuesday for an emergency meeting to discuss the 35% tariffs wanted by Trump.
