Carney says Canada will sign a U.S. trade deal only if it protects a viable Canadian auto sector

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Prime Minister Mark Carney said Canada is making progress in trade talks with the United States, but Ottawa will not sign a deal that would not support a viable Canadian auto sector.

Speaking at a news conference in Manila on Saturday, Carney said some people have argued Canada should “just go and take whatever deal,” but “this government will not settle for a deal with the United States that is not consistent with a viable Canadian auto sector.”

Carney made the comments about the auto sector three months after Canada pulled out of U.S. trade talks, citing last-minute demands from Washington that he said would have hit Canada’s auto industry.

He said the auto sector issue is “one of the fundamental issues in our trade negotiation,” and added it is also “one of the most challenging issues” in the discussions.

Carney also said he had a “quite a long, substantive conversation” this week with U.S. President Donald Trump, with U.S. Trade Representative Jamieson Greer and Trump’s chief of staff Stephen Miller on the line.

Carney said the American automotive market relies in part on Canadian manufacturing, and that the continental industry is affected by the speed of production and by electrification.

He said moving toward a stable trading relationship for the auto sector is in the interest of Canadian workers and Canada’s auto sector, and “very much the U.S. as well.”

Carney said Chinese investment in Canada’s auto sector is restricted by a set timeline and amount of vehicles, and would be reassessed based on multiple factors, including the state of Canada’s integration into the U.S. automotive sector.

Carney also reiterated Ottawa’s view that Stellantis has not met obligations it took on when accepting federal funds, following a deal to sell its Brampton, Ont., assembly plant to defence contractor Roshel.

He said Ottawa is “not satisfied with in any way with the current situation and the partial approach that Stellantis has taken here,” adding that “the expectation is that Stellantis fully respects its engagements to the workers and to Canada.”