Carney overhauls U.S. advisory council

ALBAWABA- Canadian Prime Minister Mark Carney has unveiled a revamped advisory committee on Canada–U.S. economic relations, marking a broader effort to recalibrate ties with Washington on what he described as “reciprocal and transparent” terms following his recent parliamentary victory.

The new 24-member council, chaired by Trade Minister Dominic LeBlanc, replaces a body formed under former prime minister Justin Trudeau, retaining only four of its previous members. The committee is set to hold its first meeting on April 27, according to the prime minister’s office.

The move comes days after Carney secured a slim parliamentary majority, consolidating political authority to advance his economic and strategic agenda. It also builds on his recent warning that Canada’s historically close relationship with the United States, once seen as a cornerstone of prosperity, has become a structural vulnerability.

Carney has increasingly framed Canada’s dependence on the U.S. market as a risk, particularly under President Donald Trump, whose administration has pursued aggressive tariff policies and repeatedly raised the prospect of annexing Canada as the “51st state.” These tensions have accelerated Ottawa’s push to redefine bilateral engagement.

Central to this recalibration is the upcoming review of the United States-Mexico-Canada Agreement (USMCA), known in Canada as CUSMA, scheduled by July 1.

The pact has been critical in shielding Canadian exports from U.S. tariffs, with roughly 85% of goods entering the American market duty-free. Economists say the agreement has helped Canada avoid recession despite mounting trade frictions.

However, Canada’s economic exposure remains significant, with nearly 70% of its exports destined for the U.S. Carney’s government is now seeking to reduce that reliance by strengthening domestic industries and diversifying trade partnerships, while maintaining a functional, but more balanced, relationship with Washington.

The newly expanded advisory council is expected to play a central role in shaping Canada’s negotiating strategy ahead of the USMCA review, as well as guiding policy on supply chains, market access, and cross-border investment.

Carney has also linked economic policy with defence and industrial strategy, pledging to reduce reliance on U.S. suppliers and expand domestic production capabilities. 

The shift reflects a broader reassessment of Canada’s position in a changing geopolitical environment marked by protectionism and strategic competition. The goal is not to weaken ties with the United States, but to redefine them, moving away from dependency toward a more equal partnership grounded in mutual benefit.