Canada in no mood to give in to U.S., says Morneau

VANCOUVER — A strong economy is allowing Canadian officials to push for a better deal in negotiations on the North American Free Trade Agreement, Finance Minister Bill Morneau said Tuesday.

Talks on the deal are “critically important,” but Canada will remain firm in getting the best possible agreement, he told the Business Council of British Columbia.

“Are there challenges? Yes. Do we need to be prepared to deal with them? Yes. We think that having our economy in the best possible position is the place from which we can do that, make decisions in a measured way, considering all the facts at hand,” he said.

The government’s latest budget included measures to expand trade around the world, particularly in Asia, and the financial plan is fiscally responsible, which means Canada can hold out for a better deal on NAFTA, Morneau said.

“We are going to continue to put forth why we don’t agree with some ideas that were put forth on the table by the United States. We’ve been pretty firm in that approach. We think that Canadians support us, that getting to a better deal is the way we should address this.”

Ottawa is taking a similar approach to possible U.S. plans for tariffs on steel and aluminum imports, arguing Canada should be exempt from them, Morneau said, adding the tariff issue shouldn’t be linked to the free trade deal, as President Donald Trump suggested Monday.

“From our perspective, the way to deal with a partner, to deal with our neighbour, is to be constructive,” Morneau said later after an event at the University of British Columbia. “We’re going to continue to be strong allies of the United States, we’re going to continue to be neighbours. And we’re taking that as our frame to negotiate for better outcomes.”