As Canada-US free-trade talks loom, McKay highlights energy needs and fiscal concerns facing Canada
Dave McKay, CEO of the Royal Bank of Canada, believes that while Canada and the US will face disagreements at the “fringe,” they are likely to agree on free-trade negotiations in the coming years.
According to BNN Bloomberg, McKay noted in a Bloomberg Television interview that Canada is the top trading partner for 34 states, both red and blue.
“We’re going to have disagreements at the fringe the way we did last time,” he said, but emphasized the importance of keeping the mutual benefits to both nations “front and centre.”
The US-Mexico-Canada Agreement (USMCA), which was negotiated during Donald Trump’s presidency, will undergo a review by mid-2026, six years after its signing.
Commenting on the upcoming US election, McKay said, “America will choose who they want to run their country at the end of the day. There’s some common policy issues.”
McKay also called for Canada to adopt a “business lens” in its economic policies to better meet the needs of its largest trading partner.
He explained that “America needs Canada to produce more energy, but not only for America, but for its key trade partners as well globally.” He referenced the expanded Trans Mountain pipeline, which has started supplying new oil to Asia, as an example of this cooperation.
At the domestic level, McKay emphasized the importance of controlling fiscal deficits and reducing government spending. He pointed to inflation and supply-chain issues as challenges preventing small businesses from investing with confidence.
Last month, McKay criticized Canada’s current tax policies, describing the country as “on the wrong path” and advocating for a more competitive tax regime along with a closer relationship with the US.
