Mark Carney says Canada and the United States are making progress in their trade negotiations, but Ottawa will not accept an agreement that threatens the long-term viability of the Canadian auto sector.
The prime minister made the comments Saturday, November 14, 2026, during a media availability in Manila, where he is attending the Association of Southeast Asian Nations summit.
Carney said automotive issues remain among the most difficult parts of the discussions with Washington and that Canada is seeking terms that preserve an integrated North American industry.
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Mark Carney: Carney links Canadian and U.S. auto competitiveness
Carney argued that the future competitiveness of the U.S. auto industry is connected to its relationship with Canadian assembly plants, parts suppliers and other manufacturers.
Canada’s position is that a North American production network cannot remain competitive if policies steadily shift investment and manufacturing capacity away from Canadian facilities.
That argument has become more urgent after U.S. tariffs and production changes placed additional pressure on Canadian vehicle exports and plants.
Carney said Ottawa is making progress toward resolving the auto issue, but he did not signal that a final agreement is imminent.
He also rejected the idea that Canada should accept any available deal simply to end the uncertainty surrounding the trade relationship.
Why the auto issue matters to Canada
The auto industry is one of Canada’s most deeply integrated manufacturing sectors, with vehicles and parts moving across the Canada-U.S. border several times during the production process.
Canadian plants depend on access to the much larger U.S. market, while American manufacturers rely on Canadian parts, components and production capacity.
The federal government has said an integrated North American auto sector can support investment, skilled jobs and a more competitive supply chain on both sides of the border.
Ottawa’s automotive strategy also places greater emphasis on electric vehicles, advanced manufacturing and supply chains for critical materials.
In October, Carney and Ontario Premier Doug Ford announced a joint action plan that included billions of dollars in measures aimed at protecting workers and strengthening Ontario industries affected by tariffs.
The federal government said the plan was designed to safeguard more than 120,000 direct auto-sector jobs in Ontario and support investment in future vehicle production.
Trade talks follow a difficult year
Canada-U.S. negotiations have faced repeated setbacks since the two governments began working through tariff disputes and the 2026 review of the United States-Mexico-Canada Agreement.
Carney suspended negotiations in August after the United States presented terms Ottawa described as unfair and economically damaging.
At the time, the prime minister said Canada was prepared to continue negotiating, but not at the cost of its sovereignty or key industries.
More recently, Carney has said that discussions resumed after a conversation with U.S. President Donald Trump and that negotiators were working through several outstanding issues.
The auto file is closely tied to questions about tariff rates, rules of origin, investment incentives and the treatment of vehicles and parts manufactured across North America.
Any agreement would also have to account for the broader USMCA review and the possibility of further changes to U.S. trade measures affecting Canadian exports.
Stellantis dispute adds pressure
The talks are unfolding as Ottawa confronts a separate dispute with Stellantis over its former assembly plant in Brampton, Ontario.
The company shifted planned vehicle production from Brampton to Illinois and agreed to sell the idled facility to Roshel, an Ontario-based defence manufacturer.
The federal government has said Stellantis failed to meet obligations connected to public funding and has given the company a deadline to resolve the dispute.
The plant’s future has become a test of whether government support can protect Canadian production when automakers face pressure to expand in the United States.
For Canadian workers and suppliers, the dispute has reinforced concerns that tariff policy and investment decisions could accelerate the loss of domestic vehicle manufacturing.
Canada looks beyond the United States
Carney made his comments while announcing progress on new trade arrangements with the Philippines and ASEAN.
Canada concluded negotiations for a bilateral free trade agreement with the Philippines and substantially concluded negotiations toward an agreement with ASEAN, a regional bloc representing nearly 700 million people.
The federal government estimates that the ASEAN agreement could add nearly $2 billion to Canada’s gross domestic product and create almost 14,000 Canadian jobs once implemented.
Officials say those agreements are part of a broader effort to reduce Canada’s dependence on a single trading partner and create alternative markets for Canadian exporters.
Trade diversification, however, does not replace the economic importance of the United States, which remains Canada’s largest trading partner and the central market for much of the country’s auto production.
What happens next
Canadian and U.S. negotiators are expected to continue technical discussions on autos and other unresolved trade issues.
Carney’s latest comments indicate that Ottawa sees a possible agreement but is still trying to secure terms it considers workable for Canadian plants, parts manufacturers and workers.
The next major test will be whether both sides can narrow their differences over tariffs and production rules without weakening the cross-border supply chain that supports the North American industry.
Until that happens, Canadian automakers and suppliers will continue to operate under uncertainty while governments assess possible support measures and companies review future investment plans.
Frequently Asked Questions
What did Mark Carney say about the Canada-U.S. trade talks?
Carney said the negotiations are making progress, but Canada will not accept an agreement that undermines the long-term viability of its auto sector.
Why is the auto industry important in Canada-U.S. trade?
Vehicles and parts move across the border throughout the manufacturing process, linking Canadian plants and suppliers with U.S. factories and consumers.
What is the 2026 USMCA review?
The review is the process through which Canada, the United States and Mexico assess the agreement and discuss possible changes to its operation and terms.
How is the Stellantis Brampton dispute connected to the trade talks?
The dispute has raised concerns about Canadian production, public funding commitments and the risk that tariff pressures could shift investment and jobs to the United States.
Is Canada reducing its reliance on the United States?
The government is pursuing new trade agreements with ASEAN and the Philippines, but the United States remains Canada’s most important trading partner and the main market for Canadian auto exports.
Fact-Checked: Key dates, government announcements, trade figures and automotive policy details were checked against official Government of Canada and Prime Minister of Canada information.
Disclaimer: Trade negotiations can change quickly, and no final Canada-U.S. agreement had been announced at the time of publication.