The Canada-U.S. trade talks collapsed on Friday night with 50 percent tariffs on billions of dollars in Canadian goods now in effect and Prime Minister Mark Carney promising dollar-for-dollar retaliation by early next month, supported by a strong sense of the need to defend Canadian sovereignty. The push for “digital trade alignment”, which I unpacked in a post last week, does not appear to have been a major source of contention, though Carney pointed to late U.S. demands on culture, autos, and sovereignty in a press conference over the weekend and the Globe reports that the inclusion of discoverability rule reforms was rejected by Canadian negotiators. But with the major outlines apparently agreed to, how can Canadians reconcile general agreement on digital policy with the government’s insistence that it would not budge on cultural protections?
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