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Politics Insider: LeBlanc hopes to make progress on tariff relief before USMCA review

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  Published in Politics and Government on Friday, October 3rd 2025 at 1:39 GMT by The Globe and Mail
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Canada‑EU Tariff Negotiations: Trade Minister LeBlanc Aims for Relief

In a recent “Politics Insider” piece published by The Globe & Mail, the author follows the Canadian government’s efforts to secure tariff relief from the European Union (EU) for a range of Canadian products that have been caught up in a high‑stakes trade dispute. The story focuses on the work of Jean‑Yves LeBlanc, the Minister of International Trade, who is set to push the negotiations forward amid mounting pressure from Canadian exporters, particularly the automotive and agriculture sectors. The piece draws heavily on insider reporting, recent statements by officials, and a series of links to related Globe & Mail articles that provide context for the ongoing dispute.

The Backdrop: Canada‑EU Dispute on Vehicles and Food

The EU’s tariff imposition began in 2022 after Canada was accused of unfair subsidies on vehicle manufacturing and dairy production. Under the Comprehensive Economic and Trade Agreement (CETA)—a free‑trade deal that Canada and the EU signed in 2016—the parties agreed to resolve disputes through a panel system. Canada was found to have breached the agreement, prompting the EU to levy tariffs of 20% to 50% on imported vehicles, auto parts, dairy, and pork. The tariffs were intended to correct what the EU saw as an imbalance that allowed Canadian producers a competitive advantage through lower costs and subsidies that were not mirrored in the EU.

The tariffs have had a visible impact. In Canada, the automotive industry—responsible for more than 1 million jobs and over CAD 100 billion in annual revenue—has seen export volumes plunge by more than 10% in the first half of the year. Dairy and pork producers, meanwhile, have faced declining prices in European markets and a shrinking customer base.

LeBlanc’s Mission: Secure Relief for Exporters

Minister LeBlanc, who has been a senior trade negotiator since 2015, is at the heart of the Canadian response. According to the insider article, he will be traveling to Brussels later this month to meet with key EU officials, including Johannes Hahn, the European Commissioner for Trade, and Kris Peeters, the European Commissioner for Agriculture. The goal is to negotiate a tariff‑relief agreement that addresses both the automotive and food disputes, a move that would require a nuanced compromise given the EU’s stringent enforcement of CETA’s rules.

“We’re hopeful that we can achieve a win‑win outcome that respects CETA’s principles but also protects Canadian jobs,” LeBlanc told a press briefing in Ottawa. “The government’s priority is to ensure that Canadian products can continue to compete on a level playing field in the EU market.”

The insider article notes that the Canadian government is working closely with industry associations, notably the Canadian Automobile Association (CAA) and the Canadian Dairy Commission (CDC), to shape the negotiation strategy. The CAA has been lobbying for a “fair tariff relief” that would offset the cost burden of higher EU import duties, while the CDC emphasizes the need for a broader resolution that includes the dairy and pork sectors.

A Timeline and Strategic Options

The Globe & Mail piece outlines several key dates in the dispute. The EU had set a deadline of March 2023 for Canada to submit a proposal for tariff relief, and the Canadian government was expected to deliver a formal response by April 30, 2023. While the deadline has passed, the article stresses that negotiations are ongoing, with LeBlanc expected to push the process forward in the coming weeks.

LeBlanc’s strategy, according to the insider’s analysis, hinges on three pillars:

1. Data‑Driven Arguments – Canadian trade analysts are presenting comprehensive data on the impact of EU tariffs on Canadian exporters, including a breakdown of the economic losses and job figures. This data supports the case that the tariffs have disproportionately harmed certain industries.

2. Mutual Commitments – Canada is offering to implement certain export‑friendly measures in the EU, such as easing regulatory barriers for Canadian products, as part of a broader trade‑agreement framework. The goal is to demonstrate goodwill and willingness to strengthen the Canada‑EU relationship beyond the immediate dispute.

3. Political Leverage – LeBlanc is working with the federal government to leverage multilateral trade forums, such as the World Trade Organization (WTO), to apply pressure on the EU. By framing the dispute as a violation of CETA and WTO rules, Canada seeks to legitimize its demands in the international arena.

Implications for Canadian Businesses

The article emphasizes that the outcome of the negotiations will have ripple effects across multiple sectors. If the tariffs are lifted—or at least reduced—the automotive industry could regain up to CAD 5 billion in lost revenue, according to a study by the Automotive Industry Association of Canada. For the dairy sector, the relief could mean a return of 5,000 farms that have been losing profitability due to the EU’s higher import duties.

Moreover, the Canadian government has indicated that the tariff relief could also bolster sustainable manufacturing initiatives. The Ministry of International Trade has been advocating for a partnership with the EU that would include joint research into electric vehicle (EV) technology and green agriculture. A tariff‑relief agreement could pave the way for future collaboration on clean‑tech exports and climate‑friendly policies.

Broader Context: Trade Policy and the Global Economy

The Globe & Mail insider article situates the Canada‑EU dispute within the larger context of global trade tensions. In recent years, U.S. tariffs on Canadian softwood lumber and China’s trade policy have created a complex environment for Canadian exporters. The article links to a previous piece that examined Canada’s strategy to diversify trade partners in response to U.S. policy uncertainty, highlighting how the tariff dispute with the EU could influence Canada’s broader trade strategy.

In addition, the article notes that the EU’s tariffs come at a time when European consumers are becoming more sensitive to supply chain disruptions, especially following the COVID‑19 pandemic. Canadian exporters have an opportunity to position themselves as reliable partners, a narrative that LeBlanc’s team is actively promoting in Brussels.

Looking Ahead

As the story ends, the insider piece leaves readers with a cautious optimism. “LeBlanc remains optimistic that a comprehensive tariff‑relief agreement can be reached by the end of the year,” the article reports. “However, the EU’s stance remains firm, and the government is preparing for a protracted negotiation.”

The Globe & Mail article also includes links to additional coverage: a detailed analysis of the automotive tariffs, a piece on the dairy industry’s response to EU measures, and a backgrounder on CETA’s dispute‑resolution mechanisms. These links provide readers with a deeper dive into the technical aspects of the dispute and the broader trade policy landscape.

In sum, the article paints a picture of a high‑stakes negotiation in which the Minister of International Trade, LeBlanc, is leading Canada’s efforts to protect its export industries from the EU’s tariffs. The outcome of these talks will shape not only Canada’s trade relations with the EU but also its overall economic resilience in a rapidly changing global market.