Prime Minister Mark Carney says a future trade agreement with the United States could involve “some element of managed trade,” including the introduction of quotas on Canadian softwood lumber exports. His remarks come as tensions rise over ongoing trade disputes, and just weeks ahead of a potential hike in U.S. tariffs.
Carney confirmed ongoing discussions with provincial leaders, including British Columbia Premier David Eby, who recently told Bloomberg News that Ottawa has been engaging provinces on the possibility of lumber quotas as a way to break the long-standing deadlock. The prime minister said resolving the softwood lumber issue remains a “top priority” as the U.S. moves to double certain duties on Canadian lumber to 34.45 per cent.
Canada and the U.S. have been without a formal softwood lumber agreement since 2015. Eby has argued that resolving the issue could serve as a catalyst for broader trade negotiations between the two countries. Carney expressed support for that approach, though he cautioned that the softwood lumber dispute and any broader trade deal are progressing on different timelines.
The stakes may rise further as U.S. President Donald Trump threatens to impose a 35 per cent tariff on Canadian goods that are currently not in compliance with the United States-Mexico-Canada Agreement (USMCA), with the deadline set for August 1. While Carney supports incorporating lumber into a wider trade framework, he stressed that both issues would need to be handled carefully and in coordination with provincial stakeholders.