New trade deal with U.S., Mexico unlikely, says B.C. jobs minister

New trade deal with U.S., Mexico unlikely, says B.C. jobs minister

Ravi Kahlon warns businesses as Trump plans to impose new tariffs, ramps up 51st state rhetoric

B.C.'s jobs minister says he doesn't think Canada will get a new trade deal with the United States and Mexico anytime soon, and he's not sure pursuing one now is worthwhile.

Ravi Kahlon made the comments at the B.C. Chamber of Commerce annual general meeting in Fort St. John on Wednesday.

"I'm sorry if that gives people a bit of anxiety," Kahlon said. "The environment we're in, I've never seen the type of rhetoric from our friends from down south that we're seeing right now."

His comments come as the Trump administration plans to hit more than 60 countries with new tariffs — including Canada — over allegations the countries are allowing goods produced by forced labour into their supply chains.

In recent days, Trump has also renewed jabs about Canada becoming a 51st state.

"It doesn't appear like the U.S. government is interested in meaningful dialogue," Kahlon told CBC News.

Kahlon said new agreements other countries have signed with Trump "have been essentially torn up days later," and businesses in B.C. are worried about the same.

"Many people in the business community have raised with us, what is the value of an agreement if their agreement is not honoured?" Kahlon said.

"We have an agreement now which is constantly under strain. We have a relationship that's under strain."

Canada is seeking renewal of the Canada-U.S.-Mexico Agreement (CUSMA) when it comes up for review on July 1.

The proposed new tariffs were announced by U.S. Trade Representative Jamieson Greer late Tuesday night, not long after he wrapped up an afternoon meeting with Canada-U.S. Trade Minister Dominic LeBlanc in Washington.

Jen Riley, the president and CEO of the B.C. Chamber of Commerce, said Kahlon's comments are an important signal for businesses.

"Not holding with bated breath that everything will turn around tomorrow is helpful for us to understand," Riley said.

Riley said businesses and the province need to move forward on things they can control, including expanding trade opportunities beyond the United States.

"What can we do to make sure that B.C. continues to move goods and services outside of our borders, whether that's interprovincially or into new markets?"

Kahlon said CUSMA won't expire for another decade, and it might make sense to wait to renegotiate.

"It may be in the interest of the U.S. to wait for after the midterms. It may be an interest of Canada," he said.

"But that being said, if we can get a deal right now that keeps the core principles of what we have in place, that is a positive. That gets everybody certainty.

"I'm just realistic that when we are in this type of environment, it might not be something that will happen in the short term."

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Matt Preprost is a reporter with CBC British Columbia based in Fort St. John. He has covered the B.C Peace Region and Northern Rockies since 2013. Email him at fsj@cbc.ca