How have canada's major trade agreements changed or been amended during marc carney's tenure as prime minister?
This fact-check may be outdated. Consider refreshing it to get the most current information.
Executive summary
Canada’s trade posture under Prime Minister Mark Carney has been defined by rapid diversification of partners and pragmatic adjustments to existing agreements: Ottawa is actively signing memoranda and partnership agreements across the Indo‑Pacific and the Gulf while simultaneously recalibrating its relationship with the United States within the framework of the USMCA rather than through separate sectoral pacts [1] [2] [3]. At the same time the government has introduced protective tariffs, quotas and relief measures for steel and lumber and has removed many earlier retaliatory duties to mirror US exemptions for goods covered by USMCA, reflecting a two‑track strategy of market expansion abroad and short‑term industrial defense at home [4] [5] [6].
1. Diplomatic diversification: new agreements, MoUs and partnership drives
Carney’s government has pursued a clear diversification agenda, concluding new trade and investment agreements with the United Arab Emirates aimed at attracting major foreign capital inflows and doubling bilateral trade over a decade, pushing new security and industry cooperation with the Republic of Korea including a General Security of Information Agreement, and advancing talks toward a Canada–ASEAN free trade package that Ottawa expects to finalise in 2026 — all steps designed to reduce Canada’s reliance on the United States and expand non‑U.S. exports [1] [2] [7].
2. USMCA rather than new sectoral US deals: rolling sectoral ambitions into a broader review
Instead of clinching standalone sectoral deals with Washington, Ottawa has signalled that outstanding sectoral negotiations are likely to be folded into a scheduled broader USMCA review next year, a choice Carney framed as a pragmatic alignment of timelines and leverage that makes separate, piecemeal accords unlikely [3]. That stance follows a period in which Canada removed many earlier retaliatory tariffs and agreed to match U.S. tariff exemptions for goods covered under USMCA — effectively harmonizing tariff treatment for covered products while leaving the core USMCA text intact for now [8] [5].
3. Protective measures and industrial relief: tariffs, quotas and freight support
Facing punitive U.S. levies and market disruption, the government implemented a suite of defensive measures: new tariffs and tightened quotas on steel imports coupled with freight cost relief for lumber and steel producers, and a reduction of allowable steel imports from non‑FTA countries from a prior quota to 20% of 2024 levels effective December 26, 2025, signaling Ottawa’s willingness to use trade instruments to shield key domestic industries [6] [4].
4. Internal trade and legislative changes to support external strategy
On the domestic front, the administration has pushed reforms intended to smooth interprovincial commerce and expedite infrastructure projects to bolster competitiveness abroad, notably through the One Canadian Economy Act which aims to reduce internal trade barriers and speed nation‑building projects — a move presented as complementary to external trade diversification, albeit one that has drawn criticism from some Indigenous groups and opposition voices [9].
5. Political calculus and competing agendas behind the trade moves
The combined approach—deepening ties with non‑U.S. partners while taming friction with Washington—reveals a realpolitik strategy: Carney’s government seeks to attract large foreign investments (including headline UAE commitments) and double non‑U.S. exports, yet it has made concessions to the United States by softening retaliatory stances to preserve market access for three‑quarters of Canadian exports sent south [1] [10] [8]. Critics argue these concessions reduce Canada’s bargaining power and that defensive tariffs invite tit‑for‑tat escalation, while proponents counter that diversification plus selective protection is the most realistic path given asymmetric U.S. leverage [8] [6].
6. Assessment — amendments in form, not wholesale rewrites of major pacts
Over Carney’s tenure to date, Canada’s major trade agreements have not been fundamentally rewritten: rather, Ottawa has amended tariff implementations, deployed quotas and interim measures, harmonized tariff exemptions under USMCA, and pursued new bilateral and regional arrangements that expand the trade architecture around Canada — effectively changing the operating landscape through instruments and side‑agreements while leaving core treaty texts (notably USMCA) to be addressed in a scheduled review [5] [3] [2].