Trump noncommittal on trade deal with Canada, Mexico as he meets Carney

WASHINGTON — US President Donald Trump said on Tuesday he was open to extending the free trade agreement with Mexico and Canada through a renegotiation or seeking "different deals" as he met with Canadian Prime Minister Mark Carney at the White House.

Carney made his second visit to the Oval Office ahead of next year's review of the United States-Mexico-Canada Agreement, and as one of the world's most amicable alliances has been fractured by Trump's trade war and annexation threats.

The free trade agreement was enacted during Trump's first term, allowing the majority of Canadian and Mexican goods to be shipped to the US without tariffs. However, Trump has made it clear since returning to office that he wants to reshape the relationship, and he has expressed ambivalence over the process as long as he feels he can improve the US' position.

"We could renegotiate it, and that would be good, or we can just do different deals," he said.

"We're allowed to do different deals if we want. We might make deals that are better for the individual countries."

The remarks suggested that Trump is willing to let uncertainty over the agreement's future linger.

Carney entered the visit hoping to find some relief on sector-specific tariffs. There is fear in Canada over what will happen to the US-Mexico-Canada Agreement, which is critical to Canada's economy. More than three-fourths of Canada's exports go to the US.

Trump showed a fondness for Carney but noted there was a "natural conflict" between the two countries, a point to which the prime minister politely disagreed.

"We want Canada to do great," Trump said. "But you know, there's a point at which we also want the same business."

Asked why the US and Canada had failed to reach a trade deal, Trump said it is a complicated situation. "We have natural conflict," he said. "We also have mutual love."

Carney said he would not use the word "conflict".

"There are areas where we compete, and it's in those areas where we have to come to an agreement that works. But there are more areas where we are stronger together, and that's what we're focused on."

Trump's talk of making Canada the 51st state and his tariffs have Canadians feeling an undeniable sense of betrayal. He made a joking reference to a "merger" between the two countries at the top of his remarks on Tuesday.

Low point

Relations with Canada's southern neighbor and longtime ally are at a low point.

"We've had ups and downs, but this is the lowest point in relations that I can recall," said Frank McKenna, former Canadian ambassador to the US and current deputy chairman of TD Bank.

"I talk every day to ordinary citizens who are changing their vacation plans, and I talk to large business owners who are moving reward trips away or executive business trips," McKenna said. "There is an outright rebellion."

After the meeting, Dominic LeBlanc, the Canadian minister responsible for bilateral trade, described the talks as "successful "and "positive" on trade issues, though he said the conversation would continue.

Canada was looking to finalize a deal on steel and aluminum quickly, he added.

Agencies Via Xinhua