No Canada-U.S. Tariff Deal Expected Before Midterm Elections: Former Trade Negotiator

Canada's former chief trade negotiator, Steve Verheul, says he does not expect Ottawa and Washington to reach a tariff agreement before the U.S. midterm elections.

Verheul said that while there may be a brief opportunity this fall for the U.S. administration to secure a political win through a trade deal, it is more likely that negotiations will continue into next year.

He added that, so far, no proposal close to a favourable deal for Canada has been put on the table. He also questioned whether trade agreements signed by other countries with the United States would remain durable over the long term.

Verheul led Canada's negotiations during the renegotiation of the North American free trade agreement in U.S. President Donald Trump's first term.

He made the comments during an event for Bank of Montreal clients focused on the trade outlook ahead of July 1, when the formal review of the Canada-United States-Mexico Agreement (CUSMA) begins.

According to Verheul, the trade pact continues to protect most Canadian exports from U.S. tariffs, suggesting that the agreement still provides significant benefits to the United States as well as Canada.