加拿大贸易部长：达成协议符合两国最佳利益

M WILLIAM BRANGHAM. GEOFF: WE TURNED OUT TO CANADA'S TRADE REPRESENTATIVE, DOMINIC LEBLANC, A CENTRAL FIGURE IN CANADA'S NEGOTIATIONS WITH THE UNITED STATES. WELCOME TO THE NEWS HOUR.

THANKS FOR HAVING ME. GEOFF: DAYS AGO YOU SAID THE U.S. AND CANADA WERE CLOSE TO A TRADE AGREEMENT. YOU ARE AT THE NEGOTIATING TABLE, WHAT HAPPENED?

YOU'RE RIGHT, LAST WEEK MIDDLE OF THE WEEK WE THOUGHT WE WERE CLOSE TO AN AGREEMENT. PRESIDENT TRUMP HAD ANNOUNCED THERE WAS A DEAL. WE SAID WE WERE OPTIMISTIC, POSITIVE, VERY CLOSE. THAT WAS OUR VIEW. THEN AS WE GOT INTO THE FINAL HOURS ON FRIDAY, PRESIDENT TRUMP HAD SET A DEADLINE OF MIDNIGHT FRIDAY FOR A SERIES OF SECTION 338 TARIFFS TO APPLY TO ALMOST 28 BILLION DOLLARS OF CANADIAN EXPORTS TO THE UNITED STATES.

THAT WAS THE RUSH, THE INTENSITY TO GET THE AGREEMENT. IN THE END THAT FRIDAY EVENING THERE WERE THREE OR FOUR SIGNIFICANT ISSUES, WHAT WAS INCLUDED IN THE AUTO TARIFF REDUCTIONS, HOW DO WE TREAT STEEL AND ALUMINUM DERIVATIVE PRODUCTS AND WE WEREN'T ABLE TO GET TO A LANDING SPOT THAT PRIME MINISTER CARNEY THOUGHT WAS IN CANADA'S ECONOMIC INTEREST. AT THAT POINT WE WERE NOT ABLE TO CONCLUDE THE DEAL.

U.S. TRADE REPRESENTATIVE SAID THEY OFFERED TO REDUCE A 25% TARIFF ON CARS, REDUCE THE TARIFF ON STEEL AND REDUCE ALL ALUMINUM TERRACE FROM 50% TO 25%. WHAT ABOUT THAT WAS INSUFFICIENT IN YOUR VIEW?

THAT'S A FUNDAMENTAL QUESTION. FIRST OF ALL, WE STARTED THE CONVERSATION FROM THE USMCA AGREEMENT PRESIDENT TRUMP HAS SIGNED IN HIS FIRST TERM HAD ZERO TARIFFS IN THOSE SECTORS SO THE U.S. GOVERNMENT UNILATERALLY DECIDED TO IMPOSE ON KEY SECTORS OF OUR ECONOMY, STEEL, ALUMINUM, AUTOMOBILES, SOFTWOOD LUMBER AS WELL, THESE SAME SORT OF ECONOMIC ENGINES THAT PRESIDENT TRUMP IS PROMOTING IN THE UNITED STATES ARE CRITICAL TO OUR ECONOMY AND THE CHALLENGE FOR US IS THOSE ARE THE SECTORS OVER THE LAST NUMBER OF DECADES WHERE WE HAVE BECOME THE MOST INTEGRATED WITH THE UNITED STATES.

AUTOMOBILES IS THE BEST SAMPLE. 50% OF THE CARS MADE IN THAT ARE MADE WITH AMERICAN PARTS. WE ARE THE BIGGEST CUSTOMER. WE BUY MORE AMERICAN VEHICLES, WE HAVE AN INTEGRATED ECONOMY. AT ONE POINT PRESIDENT TRUMP DECIDED TO APPLY THESE TARIFFS. IF THERE WAS A DIFFERENT TARIFF TREATMENT THEN YOU CAN SEE THAT PRIME MINISTER CARNEY CONCLUDED THAT THE ECONOMICS OF THAT DIDN'T WORK FOR THE CANADIAN INDUSTRY. THAT IS JUST ONE EXAMPLE BUT IT IS AN INSTRUCTIVE ONE.

GEOFF: GIVEN THE AND NORMA'S AMOUNT OF INTEGRATION BETWEEN THE CANADIAN AND U.S. ECONOMIES, IS IT EVEN POSSIBLE FOR BOTH COUNTRIES TO ENGAGE IN A TRADE WAR WITHOUT INFLICTING MAJOR DAMAGE TO BOTH COUNTRY POLICY ECONOMIES? -- COUNTRIES' ECONOMIES?

THAT HAS BEEN ARE CONCERNED. WE DIDN'T SEEK THIS TRADE CONFLICT, WE WERE HOPEFUL WE COULD FIND AN AGREEMENT THAT WOULD BE IN THE ECONOMIC INTEREST OF BOTH COUNTRIES RESPECTING CANADIAN SOVEREIGNTY, CRITICAL PARTS OF OUR ECONOMY AS PRESIDENT TRUMP WANTS TO BUILD AND PROTECT THOSE PARTS OF THE AMERICAN ECONOMY. WE STILL BELIEVE THERE IS A