US President Donald Trump said that Washington and Ottawa are “very close“ to a new trade agreement, which he said would include the construction of the Keystone XL pipeline at Canada's expense.
“They will build the Keystone pipeline. They will pay for it. They will pay for it in full“, Trump told reporters in Iowa. According to him, the US will provide the route, which “is already basically determined“.
The American president said that he spoke by phone with Canadian Prime Minister Mark Carney on Saturday. Trump described the possible deal as “very good“ for the United States and said it would also be beneficial for Canada.
“Part of the deal is that our farmers will not pay tariffs“, Trump said, without providing specific parameters or a timetable for the removal of trade restrictions.
No final agreement yet
Carney also described the conversation as constructive. The Canadian prime minister said that bilateral negotiations are continuing and that the teams of the two governments will work in the coming weeks to reach an agreement.
According to Carney, the outlines of a possible deal should create jobs, reduce costs for families and protect Canadian languages, culture and sovereignty. He did not announce specific terms regarding tariffs or the oil pipeline.
The Associated Press reported that the final details of the possible agreement have not yet been agreed. The two countries are also discussing easing U.S. tariffs on Canadian steel and cars.
The talks were suspended in August
The new signal of rapprochement comes after a sharp deterioration in relations in August. Then Canada withdrew from the talks after rejecting American conditions that Carney described as a threat to Canadian sovereignty, language guarantees and the auto industry.
After the failure of the talks, the Trump administration imposed 50 percent tariffs on about $20 billion in Canadian goods. Ottawa responded with retaliatory trade restrictions.
According to the “Washington Post“ Carney said in October that the talks had intensified because Washington was moving closer to Canada's negotiating position. Just days before the latest call, however, the Canadian prime minister said the two countries were not yet ready to make a deal before the U.S. midterm elections.
Keystone XL back on the agenda
Returning Keystone XL to the agenda would mean reviving a long-controversial energy project to transport Canadian oil to the United States. Trump did not specify the cost of the construction, the contractor or a deadline for the start of work.
Sources: apnews.com, washingtonpost.com, finance.yahoo.com