Canada won’t ‘leverage’ energy, critical minerals in trade talks: PM

In an interview with the Canadian Press, PM Mark Carney reveals Canada has no intention of leveraging energy or critical minerals amid U.S. trade talks.

OTTAWA — Prime Minister Mark Carney says Canada will not use energy or critical minerals as “leverage” in upcoming trade talks with U.S. President Donald Trump’s administration.

Carney said on Friday that Canada is not talking about halting any such trade with the U.S. and ruled out the notion entirely, adding Canadians honour their contracts and agreements.

But the prime minister also suggested further integration with the United States in those sectors -- highly coveted by the Trump administration -- remains in question.

“I reject that characterization of it’s leverage. It’s looking at, is it in our mutual interest to trade more? Where is it? And if it’s not there, we have other options,” Carney said Friday in his first interview with The Canadian Press since entering federal politics.

“Should we be further integrating our energy markets with the United States at a time they view that as, quote, ‘leverage’?”

Carney’s comments come as his government grapples with damaging U.S. tariffs that remain locked in place as a scheduled review of the continental free trade pact approaches.

Carney pointed to the plight of Canada’s “incredibly” integrated automobile market, which he said is at risk of being “pulled apart” by U.S. tariffs.

On Wednesday, United States Trade Representative Jamieson Greer told a group of visiting Canadian politicians, trade envoys and businesspeople in Washington that Canada should not attempt to use its energy and natural resources as leverage in negotiations on the continental free-trade pact.

Greer said the administration is looking to work with Canada on energy and critical minerals development in ways that would benefit both countries.

A week ago, Natural Resources Minister Tim Hodgson told a Toronto business crowd that Canada’s energy and natural resources sector are “Canada’s strongest cards in the CUSMA renegotiation.”

Carney spoke with The Canadian Press in his office on Parliament Hill, now decorated with sports paraphernalia -- a CFL helmet and football from Edmonton and various items of Oilers swag.

In a place of prominence beside his desk, is an Inuit-themed hockey jersey, given to him last June by Inuit Tapiriit Kanatami president Natan Obed, from an ITK all-stars team.

Carney was eager to explain the jersey, pointing out the four Inuit hockey players representing the four Inuit regions in Canada, are positioned in such a way that the centre between them forms a maple leaf.

The office has changed noticeably since the departure of his predecessor Justin Trudeau, who was less of a sports fanatic and more of a sci-fi buff -- though he did have a Habs jersey on display.

Carney granted a rare series of interviews to journalists this week, including CBC News and the French-language newspaper La Presse, to mark the one-year anniversary of his electoral victory last year and highlight some of his accomplishments.

He talked up a marked improvement in federal-provincial relations over the past year. And he hailed the creation of new federal offices, one to speed up major project approvals and another for military procurements, saying those measures will eventually “pay real dividends.”

Carney’s leadership bid, first election and first year in office all centred on managing the threat posed by Trump.

The prime minister said he’s learned over the past year the president prefers being spoken to directly.

“There is, I think, a misconception, maybe, or a view a number of people have formed that the best way is to cloak things in different language and flattering language,” Carney said.

“He’s a tough negotiator. He has very strong views about what he wants, and so what’s important is to find ways to communicate what Canada wants, what Canada expects, that’s respectful but also direct. So I would say in my interactions with him, that’s proven right.”

Carney also defended Trudeau’s record on trade and his handling of Trump.

The Canadian Press asked Carney if he understands Trump and his notions about the “art of the deal” better than Trudeau did, given the stark shift in the tone of the relationship with the U.S. president that happened when Carney succeeded Trudeau.

He credited Trudeau with successfully negotiating the CUSMA agreement during Trump’s first term in the White House and said the deal “stands the test of time.”

Carney also pointed out that the circumstances have changed significantly since then.

“The ambitions of the U.S. president have changed. The nature of the checks and balances in the U.S. system, or the effectiveness of those, have changed. Priorities of the president have become all-encompassing, if you will,” he said.

Carney added he believes most of the trade pact will survive its upcoming renewal process.

“Much of it will be retained. Some things are going to have to change but we’re looking to make sure they change in a way that’s in Canada’s interest,” he said.

Kyle Duggan, The Canadian Press

With files from Mia Rabson in Ottawa and Kelly Geraldine Malone in Washington.