Ottawa [Canada], August 1 : Canadian Prime Minister Mark Carney has reaffirmed his country's commitment to the Canada-United States-Mexico Agreement (CUSMA), even as he expressed disappointment over the United States' decision to increase tariffs to 35 per cent on certain Canadian exports not covered under the trade pact.
Stressing a shift towards economic self-reliance, Carney said the government is focused on domestic strength and long-term national resilience.
"Canadians will be our own best customer, creating more well-paying careers at home," Carney said. "We can give ourselves more than any foreign government can ever take away by building with Canadian workers and by using Canadian resources to benefit all Canadians."
"While the Canadian government is disappointed by this action, we remain committed to CUSMA, which is the world's second-largest free trade agreement by trading volume," Carney said in an official statement on Thursday.
The Canadian Prime Minister emphasized that while the US application of CUSMA keeps the average tariff rate on Canadian goods among the lowest of any US trading partner, key sectors such as "lumber, steel, aluminum, and automobiles" continue to face heavy duties and tariffs.
"For such sectors, the Canadian government will act to protect Canadian jobs, invest in our industrial competitiveness, buy Canadian, and diversify our export markets," the statement added.
Carney also rejected the US justification for the tariffs, which cited the cross-border flow of fentanyl. "Canada accounts for only 1% of U.S. fentanyl imports and has been working intensively to further reduce these volumes," he noted.
Highlighting Canada's investments to combat drug trafficking and transnational crime, Carney stated that the government is supporting law enforcement and border security with "thousands of new law enforcement and border security officers, aerial surveillance, intelligence and security operations, and the strongest border legislation in our history."
"We will continue working with the United States to stop the scourge of fentanyl and save lives in both our countries," he said.
While confirming continued negotiations with the US, Carney said the Canadian government is "laser focused" on domestic priorities. "The federal government, provinces and territories are working together to cut down trade barriers to build one Canadian economy."
He added that Canada is pursuing "major nation-building projects" with provincial, territorial, and Indigenous partners that could catalyze over half a trillion dollars in new investments.