Carney and Trump ‘negotiating’ towards possible ‘positive’ deal: U.S. envoy

Prime Minister Mark Carney and U.S. President Donald Trump are having direct talks toward what could be a new trade deal, the U.S. ambassador to Canada said Wednesday, but quickly added he’s “not confirming or denying” that any agreement is done.

“All the indications are that we could move toward a very positive agreement,” Ambassador Pete Hoekstra said of the negotiations during a fireside chat with Global News’ Mercedes Stephenson at the Canadian Club of Ottawa.

“Until a deal is announced, we won’t know what’s in it and we won’t know if it’s finalized.”

Before sitting down with Stephenson, Hoekstra appeared to confirm a CBC News report that said a working document has been exchanged between Ottawa and Washington outlining the potential deal’s terms. The report did not say what those terms were.

Yet he later said “I’m not confirming or denying anything” when pressed on whether the report was accurate.

“You got a prime minister who’s negotiating on the best interests of Canada, you’ve got a president who’s negotiating on getting the best deal for the United States of America,” Hoekstra told the crowd.

Carney has made securing a new deal with the U.S. on trade, security and other bilateral issues a top priority of his new Liberal government, after Trump imposed sweeping tariffs on Canadian goods and multiple industries including the auto, steel and aluminum sectors.

Hoekstra suggested Carney and Trump were eying the upcoming G7 Leaders’ Summit in Kananaskis, Alta., as an “inflection point” for a potential deal to be announced.

“They were both going to be at the same place, they’re both going to be in Canada, and and there’d be lots of questions if there isn’t something that is announced,” he said.

“Until it happens, it’s still a possibility.”

8:56 What could be strong leverage for Canada in negotiations with the U.S.

The Globe and Mail was the first to report last week that Carney was engaging in direct behind-the-scenes trade discussions with Trump.

After Stephenson said there have been “extensive talks” between Carney and Trump, Hoekstra jokingly whispered, “Shh — some people said those were secret.”

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“Somebody came back and said those were secret talks, and it’s like, I don’t know how those would be secret,” he said. “I’d hate to see if it was wide open and transparent.”

Ontario Premier Doug Ford said last Thursday that the two leaders were in “deep, deep discussions” on trade and were “working hard around the clock to try to get a deal.”

1:46 Joly says Trump’s ‘unlawful, illegal’ steel tariffs have feds in ‘solution mode’

Industry Minister Melanie Joly would not confirm the discussions were taking place when asked by reporters in Ottawa later that same day.

“Guys, do you really think I’ll answer that question?” she responded. “I won’t answer that question. We won’t negotiate in public and we’ll let the prime minister do his work.”

She had also said in French that there were “diplomatic discussions” happening between Carney and Trump, but characterized them as separate from the trade and security negotiations taking place between members of the Trump administration and key Canadian cabinet ministers.

Joly and other ministers did not address the potential of an imminent deal with the U.S. during question period in the House of Commons on Wednesday.

The industry minister said Canada will “continue to fight” to get U.S. tariffs removed as negotiations continue.

0:50 Feds ‘will continue to fight’ to get U.S. tariffs removed amid negotiations with Trump: Joly

Hoekstra made clear he has not seen any deal framework or other documents coming out of the negotiations, but hinted it will likely focus on ensuring Canada is included in supply chains for things like auto manufacturing and critical minerals.

“I think you will see it will include (that) we need to be able to make it (in the United States) or we need to be able to make it in conjunction with a supply chain that is reliable,” he said. “We know Canada is reliable.”

He added that it would be “reasonable” for the two countries to be having a “very, very serious discussion” about partnering on growing the North American artificial intelligence sector and sharing energy resources.

“It should be a part of any agreement — whether part of this first agreement or whether they’re identified as an area of discussion or negotiation moving into the future,” he said.

“These are two leaders in a hurry to get things done that they believe are absolutely critical,” he added. “And yes, the pace is unprecedented, but the expectation is that the results may be unprecedented.”

0:34 LeBlanc says trade meeting with U.S. was ‘positive’ amid looming steel, aluminum tariff increase

Defence partnerships will also likely be addressed in any framework, Hoekstra said, as well as cooperation on border security.

Carney announced earlier this week a more than $9 billion investment in military spending, which he said will ensure Canada meets NATO’s two per cent of GDP defence spending target this fiscal year.

Hoekstra said the U.S. was “thrilled” by efforts to ramp up defence spending.

The Liberals last week tabled a new border security and immigration bill that aims to put new limits on asylum and expand law enforcement powers to combat fentanyl and cross-border crime.

The government said the bill, which builds on new border security investments first unveiled last December, addresses concerns raised by the U.S.