Canada’s envoy to the United States emphasized the necessity of reintroducing American alcohol into Canadian markets during discussions to secure a trade deal and avert potential tariffs, as per sources disclosed to CBC News. Ambassador Mark Wiseman conveyed this message while briefing approximately 100 members of the Canada-U.S. trade council, comprising businesses, industry representatives, and labor organizations.

Currently engaged in critical negotiations in Washington to prevent the imposition of 50% tariffs on Canadian exports, Canada’s negotiating team faces a looming deadline of midnight Friday for reaching an agreement with the Trump administration. Wiseman indicated a preliminary consensus to sidestep the new tariffs during his presentation, as reported by three sources familiar with the call.

Wiseman disclosed that around 35 Canadian officials are actively involved in finalizing the language of a potential deal at Canada’s Embassy in Washington. The goal, he mentioned during the call, was to complete this task within 24 to 48 hours. The proposed agreement includes provisions to decrease steel, aluminum, and auto tariffs, as well as modifications to the allocation of dairy import licenses by the government, a move that could lead to increased American dairy products in Canadian retail outlets.

Following Wiseman’s discussion, former Canadian chief trade negotiator Steve Verheul cautioned the council about potential drawbacks associated with the deal. Verheul, who played a key role in negotiating the Canada-U.S.-Mexico Agreement and the previous NAFTA talks, expressed concerns that accepting certain tariffs and concessions could compromise Canada’s long-term interests.

Verheul highlighted the risk of relinquishing leverage ahead of the CUSMA review, emphasizing that the U.S. industry largely opposes Trump’s tariffs and favors maintaining duty-free trade. He underscored the importance of Canada clearly rejecting sectoral tariffs and maintaining duty-free trade as key objectives moving forward.

The council also heard from former finance minister Chrystia Freeland, who led Canada’s NAFTA renegotiation efforts, expressing skepticism about agreeing to tariffs that could prove challenging to reverse in the future. Furthermore, industry sources raised concerns about limited consultation with relevant sectors, contrasting the level of information shared with U.S. industry representatives by the Trump administration.

As negotiations continue amid mounting pressure, stakeholders are closely monitoring the developments to secure a favorable trade agreement before the impending deadline.