Old CUSMA deal no longer possible, Moe says after Carney briefing

Details of a pending trade agreement between Canada and the United States remain scarce, but Saskatchewan Premier Scott Moe said Wednesday that people first need to understand the old deal is no longer on the table.

Moe made the comments in Prince Albert moments after a First Ministers Meeting with Prime Minister Mark Carney, as negotiators continued work on an agreement meant to prevent new U.S. tariffs from taking effect.

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“Even up to a day or two ago, there really was … no path forward in sight, no trade agreement in sight,” Moe said at a late-afternoon news conference.

He said Saskatchewan’s trade with the United States remains strong because of exports such as oil and gas, potash, critical minerals and grain, but added that export growth to other countries must remain part of the province’s long-term strategy.

“I think this is also an opportunity for us as Canadians, and we’ve always realized this in Saskatchewan, the importance of expanding our markets around the world.”

Saskatchewan exports to 163 countries, and that number could grow as markets in places such as Eastern Europe and Asia develop.

U.S. President Donald Trump paused threatened 50 per cent tariffs on a broad range of Canadian goods for three days late Tuesday, less than two hours before they were scheduled to take effect. Canadian officials have said substantial progress has been made, though more work is needed before details are finalized.

Moe said the immediate effect for Saskatchewan is that the threatened tariffs, which he said would have affected some provincial industries, are not coming into force for now. He said negotiators are also still discussing possible reductions to existing sectoral tariffs.

“That is step one and that is a positive step in the negotiations,” he said.

Moe said about five per cent of Saskatchewan’s economy is affected by the current trade situation, and that figure would have risen to about six per cent if the new tariffs had proceeded. He said the broader numbers do not capture the full impact on individual sectors facing tariffs, including forestry, steel and manufacturing.

He also said Prime Minister Mark Carney has asked provinces to consider changes to procurement rules and putting U.S. alcohol back on liquor store shelves. Moe said that request does not affect Saskatchewan in the same way it does some other provinces because Saskatchewan did not remove U.S. alcohol from shelves.

It will be up to premiers in the eight provinces that have banned U.S. alcohol to decide whether to reverse their decisions.

Moe said any deal must be judged against the current negotiating environment rather than against the previous CUSMA framework.

“We do need to recognize that the CUSMA deal that we had one and two years ago was no longer possible,” Moe said. “We have to go to the negotiating table as Canadians … to get the best deal that we can possibly get.”

Asked how confident he was that the agreement would last, Moe said Canada has to make every effort to reach a deal with its largest trading partner, even if future decisions by the United States are beyond Canada’s control.

“We need to bargain in good faith and I feel that Canadians believe that our government and our negotiating team is,” Moe said.

Moe said premiers have not always agreed on every part of the response to U.S. tariffs, but said there has been an overarching effort to set aside differences in the national interest.

He said that diversity of views is not a weakness, but a Canadian strength, adding that premiers share a broader goal of putting the country first and securing preferred access to Canada’s largest trading partner.

Moe said Saskatchewan supports further pipeline capacity, including the potential revival of Keystone XL, along with other proposals to move Western Canadian oil to the United States and to tidewater. He said more export capacity would help Saskatchewan attract further oil and gas investment and reduce reliance on a single market.

He said Saskatchewan’s economy will continue to depend on trade beyond its borders, noting that the province exports most of what it produces.