New Delhi (India) August 22: Trade talks between the USA and Canada have stalled after three days of tense negotiations failed to reach a deal, further increasing tensions between the long-term allies. The United States imposed 50% tariffs on roughly $20bn of Canadian products.

Canada Seeks Fair Trade Terms

Canada has halted trade talks with the US after President Donald Trump's administration made last-minute changes to its terms, which were described as "unfair" and "uneconomic". The Canadian Prime Minister, Mark Carney, stated that the decision was made due to "recent progress" made in talks between the two countries, but that these negotiations were insufficient in achieving the country's goals of preferential treatment for its businesses, lowering US tariffs on vital sectors and safeguarding smaller and medium-sized enterprises.

He said, “Over the past 18 months, Canada’s new government has focused on building our strength at home, diversifying our partnerships abroad, and striking a fair deal with the United States." 

He added, "In recent weeks, we made important progress toward improving Canada’s position as having the best deal in the world with the US. However, that progress has not been enough to meet our objectives for Canadians. As a result, this evening, I have decided to suspend trade negotiations with the US and have directed Canada’s negotiators to return to Ottawa. They have worked hard, in good faith, to defend the interests of Canadians throughout these negotiations up until the very last minute. However, last-minute changes in the US proposed terms were unfair, uneconomic, and called into question the reliability of any deal.”

Carney said, "We have recognised from the beginning that America has changed, and that we will not return to our old relationship. Our government understood, before many, that America is altering all its trade relationships. Putting tariffs on its closest allies and charging for access to its vast market.”

US Accuses Canada Of Backtracking

United States Trade Representative Jamieson Greer presented an alternative viewpoint, stating that Ottawa was responsible for bringing negotiations to an end even when they were progressing. Greer suggested that the US had provided Ottawa with the best access of any major exporter, while new requests and broken promises by the Ottawa government had skewed an equilibrium established throughout the discussions.

“Tonight, Canada declined to finalize the trade deal under the terms agreed earlier this week. Despite the US offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days,” he said.

Trump Was Hopeful Of A Deal

The announcement of the halt to talks came after President Trump's indication that a deal with Ottawa should be attainable based on his "good relationship" with Mark Carney.

Trump said, "Pretty much, I think so, we'll see. I've dealt with the Prime Minister, have a good relationship and yeah, we have to take care of our farmers. Our farmers are very important to me and the deal with Canada is moving along and we should be able to have a deal with Canada.”