Canadian Prime Minister sees American flexibility and lower demands in trade negotiations

Mark Carney, Canadian Prime Minister, stated on Tuesday (3) that trade talks with the United States have made progress, although no agreement has been reached. According to Money Times, the prime minister's view is that the American government reduced its demands and began to present more concessions.

The speech took place in Antigua, shortly after a meeting with Commonwealth leaders. According to Money Times, Carney said there is still work to be done before any understanding can be finalized, indicating caution from Ottawa about the pace of talks.

The prime minister's explanation for the advance lies in points that Canada sees as red lines, that is, topics that the country is not willing to discuss in a flexible way, in which the American government's stance has changed. In the premier's assessment, Washington backed down on sensitive issues for the Canadian side and reduced its demands.

At issue is the model that the two neighbors will adopt to govern their commercial exchanges. The data collected does not provide a date for concluding an agreement. What is known is that Carney sees progress, but conditions any understanding on completing the work that remains to be done.

Impact for those who invest

Those who follow the stock market, dollar and interest rates tend to interpret a trade pact between Canada and the United States as something that reduces uncertainty for companies exposed to bilateral trade. As the agreement does not yet exist and the premier himself states that there is a lack of work, the effect for now is one of expectation, not actually accomplished. It is worth following the next official announcements from each government before drawing conclusions about affected sectors.

Automatically translated from Portuguese.