QUESTION PERIOD — International Trade
Canada-U.S. Trade
February 3, 2026
Government leader, it’s good to see you and to be back working on behalf of Canadian taxpayers.
Despite Prime Minister Carney living in a fantasy of a new global world order, I think all of us will agree that in reality, the United States of America remains our greatest trading partner by miles. We must recognize that Canada has a very fragile economy right now. We also have a global market that is weakening on a week-to-week basis, and, fundamentally, we have a Canadian dollar that is at the weakest level it’s been in the history of this country.
Can you give this institution a brief understanding of where we are regarding the Carney government’s negotiations with our most important trading partner, the United States?
Thank you for your question, and it is good to see you as well, Senator Housakos.
Regarding the fantasyland that you were describing in your question, let me remind you that over the last nine months, the new prime minister has been acting swiftly on many issues that concern Canadians. We have adopted a law on projects of national interest, and 13 projects are being accelerated across the country. We lowered capital gains taxes and taxes for individuals, lowering taxes for 22 million Canadians. We abolished the carbon tax for individuals. We strengthened the fight against crime with Bill C-8, regarding cybersecurity; Bill C-9, regarding hate crime; Bill C-12, regarding borders; and Bill C-16, regarding violence against women. We have invested in the construction of new housing units in Atlantic Canada, British Columbia, Ontario, the Prairies, Quebec and the North. We increased the military budget with $81 billion over five years. We reduced trade barriers between provinces —
Thank you, Senator Moreau.
It is nice that you are starting to do some of the things we’ve been asking for over the last 10 years. Hopefully, it won’t take 10 years for me to get an answer to the question about where trade negotiations are.
The facts are clear, and they remain: The U.S. is far and away our most significant trading partner, with $3 billion a day of trade. The Prime Minister can go to Qatar, China, South Korea and the United Arab Emirates — or U.A.E. The reality is that if you combine our trade with all these nations he has travelled to, it is a fraction of what we do with the U.S.
Please let us know the state of negotiations regarding Canada‑U.S. free trade.
In travelling throughout the world, the Prime Minister is opening up 2.2 billion new customers for Canadian industry; creating new strategic partnerships with the European Union, China and Qatar; creating new free trade deals with Ecuador and Indonesia; and negotiating a free trade pact with India, Southeast Asia, Thailand, the Philippines and Mercosur.
For a dreamland, that is not so bad.
I will try another question, because you have no report on Canada-U.S. free trade.
A recent International Monetary Fund, or IMF, study shows that Canada’s internal trade barriers are equivalent to an average 9% tariff on our economy. That is higher than the estimated average tariff rate of 5.9% that the U.S. applies to Canadian goods.
Senator Moreau, this is not the “one Canadian economy” we were promised by Prime Minister Carney. His governing-by-rhetoric approach is clearly not working. Why is it taking so long for your Liberal government to deliver on its promises and finally remove internal trade barriers in order to unleash the full potential of our economy? Our trade barriers are sometimes higher between the provinces of this country than they are right now with what we are facing with these Trump tariffs. When will you get rid of them?
Your question was awaited by at least your caucus, sir.
As the Prime Minister said, the government recognizes that the U.S. has fundamentally changed its trading relationship. Officials have been engaged in detailed and constructive discussions toward an agreement that will benefit both countries. A lot of progress has been made, and the government stands ready to continue that work.
But it takes two to tango, and we are at the table. We are currently having discussions with the U.S. in order to have those matters settled.
