US, Canada Will Clash at ‘Fringe’ in Trade Talks, RBC CEO Says
The US-Mexico-Canada Agreement, negotiated during Donald Trump’s presidency, will come up for review by mid-2026, six years after the deal was signed.
Canada and the US Likely to Find Common Ground on Trade Negotiations, Says RBC CEO
According to Royal Bank of Canada CEO Dave McKay, Canada and the US may have some disagreements at the “fringe” but are expected to identify common ground in free-trade negotiations in the years ahead.
“Canada is the number one trading partner for 34 states—many of them red states and many blue states. When you look at the longstanding relationship, we’re going to have disagreements at the fringe, just like we did last time,” McKay stated in a Bloomberg Television interview on Tuesday. “At the core, I think we see the benefits to both nations, and therefore, we must keep that front and center.”
The US-Mexico-Canada Agreement, which was negotiated during Donald Trump’s presidency, is scheduled for review by mid-2026, six years after it was signed.
“Ultimately, America will decide who they want to run their country,” McKay said regarding the upcoming US election. “There are some common policy issues.”
On the broader US-Canada relationship, McKay emphasized the importance of Canada adopting a “business lens” to improve its economy and better meet the needs of its largest trading partner.
“America needs Canada to produce more energy, not just for the US but also for its key global trade partners,” he noted, referencing the recently expanded Trans Mountain pipeline, which has begun supplying new oil to Asia.
Domestically, McKay urged Canada to manage its spending and control fiscal deficits. He highlighted inflation and supply-chain challenges as obstacles to small business investment. Recently, he has criticized Canada’s taxation policies, asserting that the country is “on the wrong path” and requires a more competitive tax regime alongside a closer relationship with the US.
