North American Trade: Washington and Ottawa near final deal

The United States and Canada are close to resolving a months long trade dispute, with both governments signaling that a final agreement is within reach. President Donald Trump announced the progress during a rally in Dubuque, Iowa, where he described the proposed arrangement as a very good deal. The talks have intensified following a series of reciprocal tariffs that disrupted supply chains for steel and automobiles.

The central component of the potential deal involves the revival of the Keystone XL pipeline. Under the proposal, Canada would finance the construction of the infrastructure project. The pipeline would transport 830,000 barrels of oil per day from Alberta to U.S. refineries. TC Energy, the company behind the original project, previously lost billions of dollars when the line was canceled. The firm has also proposed a separate project called the Prairie Connector in partnership with Bridger Pipeline.

Canadian Prime Minister Mark Carney confirmed that the discussions aim to create jobs, improve affordability, and respect Canadian sovereignty. He stated on social media that his teams will work in the coming weeks to finalize the agreement. Trump emphasized that the deal would protect U.S. farmers by ensuring they pay no tariffs on Canadian products. Both leaders acknowledged that details remain unclear and that further negotiations are necessary to close the gap between the two positions.

The trade dispute has become a key issue in northern border states such as Michigan and Maine, where candidates are calling for an end to the conflict. With U.S. midterm elections approaching, the timing of the negotiations has gained urgency for voters in these regions. Washington has aligned more closely with Canada's position, according to reports from PBS NewsHour. The next step involves detailed work by technical teams to draft the final terms of the agreement.