Lutnick says Canadian minister didn't deny trying to 'blow up' negotiations

OTTAWA — U.S. Commerce Secretary Howard Lutnick said a Canadian minister did not deny it when asked if Canadian negotiators were trying to “blow up” trade negotiations last month.

Lutnick, the brash Trump cabinet member who is a close advisor to U.S. President Donald Trump, made the claim during an interview on CNBC Wednesday morning when discussing the end of negotiations late Friday Aug. 21.

“Friday at 4 o’clock, the Canadians call. They start adding crazy ideas to the mix. So, I said to one of the ministers, ‘are you actually trying to blow this up?’ And his answer to me was, ‘I’m not allowed to say that.’ And they blew it up for political reasons only,” Lutnick said.

The only minister present at the negotiations with the U.S. was Canada-U.S. Trade Minister Dominic LeBlanc. LeBlanc’s office did not immediately respond to a request for comment.

Lutnick’s comments were the latest salvo in an escalating war of words between the U.S. and Canadian federal governments since trade talks fell through on Aug. 21.

The Canadian and U.S. governments have consistently blamed the other side for blowing up recent trade negotiations aimed at avoiding new tit-for-tat tariffs and reducing ongoing U.S. tariffs on key Canadian sectors.

The day after instructing Canadian negotiators to leave the table and come home, Carney told reporters the U.S. had added a series of last-minute unacceptable conditions to draft deal text that pushed him to cut negotiations.

He cited the addition of language on auto industry tariffs, such as a failure by the U.S. to reduce tariffs on heavy-duty trucks such as those produced in auto plants in Southern Ontario. He also cited “efforts to restrict our protections of our language, our culture, and in effect, our sovereignty.”

In response, U.S. Trade Representative Jameson Greer and Lutnick have accused the Canadians of cutting talks off for political reasons.

Days after talks ended, Greer attributed the collapse to Canada ultimately wanting more than what his administration was willing to give, noting that the proposed agreement included halving U.S. tariffs on Canadian steel and aluminum, reducing tariffs on Canadian autos and tariff relief on Canadian softwood lumber.

The USTR said it was the best market access to the U.S. compared to any other country in the world.

“They wanted more,” said Greer. “I don’t know if it was political for them, it certainly doesn’t make economic sense, but perhaps for political reasons, they have some byelections coming up,” Greer said in reference to three federal by-elections that occurred Monday Aug. 31. The Liberals won all three.

National Post also recently reported a senior Canadian government official noting that the country’s negotiators pulled out because Ontario Premier Doug Ford “was not on board.” A key Canadian concession in the negotiations was that all provincial liquor boards would resume stocking U.S. alcohol.

Speaking to reporters on Tuesday, Carney said “no” when asked if Doug Ford had any role in the failure of the negotiations.

“We consult with the premiers, take into account their views,” Carney said. “The decisions on trade are the decisions of the government of Canada. I’m the prime minister. Ultimately, I am responsible with the Cabinet for those decisions.”

“Those of us who are at the table, or next to the table if you will, know exactly why an accumulation of issues, each of them (were) serious enough… to not have a deal.”

National Post

cnardi@postmedia.com

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