Canada needs to stand firm as trade talks approach: Unifor’s Payne

Unifor national president Lana Payne prepares to appear before a House of Commons committee, in Ottawa, Thursday, March 21, 2024. THE CANADIAN PRESS/Justin Tang

As Canada approaches a review of its key free trade deal with the United States next year, Unifor national president Lana Payne says it’s important to stand firm for a good deal.

Payne says she’s troubled by the views of some in the business community who have pushed to reach trade deals quickly.

She says rushing into a deal at any cost is “absolutely the most terrible approach to negotiations,” and Canada has to remember it has leverage in these talks.

Prime Minister Mark Carney said last week that Canada will enter into formal discussions with the United States in January to review their free trade agreement.

Washington’s trade representative says a coming review of the Canada-U.S.-Mexico trade deal, also known as CUSMA, will hinge on resolving concerns about Canadian policies on dairy products, alcohol and digital services.

Canada has also been in talks with the U.S. on sectoral tariffs that have hit industries like autos, forestry and metal production especially hard.

Payne said it’s important to play hardball, and not allow tariffs to be legitimized in any form. Instead, Canada needs to hold out and let the “self-inflicted wounds” of tariffs create pressure instead.

“We’re seeing that now in the United States where their economy is suffering and worsening by the day,” Payne said in a Dec. 19 interview.

She pointed to the loss of manufacturing jobs, the downward direction of new hires and payrolls, and the impacts on the tourism industry and small businesses as all creating internal pressure in the U.S.

“The cake is baking down there right now, and that means we’re in a much better place as a country when it comes to negotiations with the United States,” she said.

The talks are still daunting though.

In a statement last week to a congressional committee, U.S. Trade Representative Jamieson Greer outlined concerns about access to Canada’s dairy market and Canada’s exports of certain dairy products.

Carney responded that Canada has been clear about its intention to protect the supply management of agricultural products, while he said the government is very ready to strike deals on specific sectors like forestry.

Payne said that Canada is dealing with a “very unpredictable character” in Trump, including the potential that he will decide to withdraw the U.S. from the trade deal, meaning Canada needs to be ready for a range of possibilities.

“We have to be able to respond accordingly, but we also can’t be conditioned into taking a bad trade deal just because they’re threatening us.”

This report by The Canadian Press was first published Dec. 24, 2025.

Ian Bickis, The Canadian Press