
How are trade deals actually negotiated?
Trade deals have never been more in the headlines, as Donald Trump continues to threaten countries with higher tariffs until they sign new agreements with the US. But how exactly are trade deals negotiated between nations, and has the US president’s forceful actions changed how the talks are conducted?
Former Canadian trade negotiator Jason Langrish says that Trump’s tariff threats have undoubtedly worsened the tone inside the negotiating rooms.
“Lately, as we’ve gone into a nativist, nationalist phase, these trade deals have become more defensive and accusatory,” he explains.
Mr Langrish, who helped Canada sign trade deals with the EU and India, adds that this contrasts with how such agreements were previously reached. “Traditionally, trade talks were positive because you’re taking an agreement that works between two countries and you’re upgrading it.”
He points to the continuing trade talks between Canada and the US as an example of the change in atmosphere. Their two teams are currently working towards signing a new deal by a 1 August deadline.
“It’s what we would call a defensive negotiation. Canada didn’t ask for this, but it’s something that we have no choice but to engage in.”