Image copyright AFP Image caption Officials from Canada and the United States have to weigh up whether local demands will put trade interests ahead of international rules
Officials from Canada and the United States will meet next week to discuss the threat to impose tariffs on the import of some US agricultural products.
Some US suppliers of potatoes, sugar and tobacco are said to be concerned that the tariffs would put their businesses at risk.
Canadian officials say the move would end up damaging both countries’ interests.
The Canadian Press news agency reports that Canada’s trade minister, Chrystia Freeland, is asking for US help with ending the ban on imports of the treats.
She will discuss the move with US trade representative Robert Lighthizer, as well as other senior US officials in Washington next Friday.
Talks, which are set to begin “any day now”, will take place at the end of a meeting of the NAFTA trade pact, which was struck with Canada and Mexico in 2015.
Unlike in a US-Mexico trilateral deal struck last week, there will be only two officials present – Ms Freeland and her US counterpart, Robert Lighthizer.
If she does not receive sufficient support, the Canadian Press reports, Ms Freeland will drop plans to head back to Ottawa to brief her cabinet colleagues.
Following President Donald Trump’s visit to Canada in June, US-Canadian talks are being accelerated and comprehensive talks on updating the 24-year-old NAFTA deal are expected to begin in August.
What is the problem?
US officials say the ban, put in place by P.E.I. officials in 1989, was put in place to prevent Newfoundlanders from acquiring drugs from New Jersey without proper authorisation.
They say the restrictions now put in place on drugs from Washington state, Texas and Iowa are preventing supplies of potassium chloride, a key ingredient in lethal injections.
Potassium chloride, potassium nitrate and potassium phosphate are classified as narcotics by the US Food and Drug Administration (FDA), who set control points for where they should be imported.
However, the Canadian Press reports that there are some issues on the import from the United States of potassium water containing potassium chloride and potassium Nitrate.
The US has limited both water and nitrate imports from Canada, which is one of its top trading partners.
Representatives from the New Brunswick Potato Commission, the American Sugar Cane League and the Canadian Tobacco Company have said there is evidence to support putting sanctions on potatoes, tobacco and sugar.
What about other goods?
If tensions in the US-Canada trade dispute continue to escalate, the Reuters news agency says dairy products are likely to be added to the list.
Canada has been a firm opponent of Mr Trump’s “America First” policy, which has seen the president turn towards major trading partners – including Mexico and Canada – to seek new terms in trade deals.
Since the US is the largest market for all Canadian exports, Mr Trump has urged Ottawa to renegotiate or withdraw from the North American Free Trade Agreement (Nafta).
According to Reuters, Mr Trump is likely to look favourably on proposals from Canadian government to reduce tariffs and drop dairy prices.
However, negotiators must remain mindful of the World Trade Organisation’s principle of non-discrimination when dealing with imports.
As a result, economists believe that tariff reduction may be off the table.
“I would not make tariff reductions,” Dave White, an economist from York University told Reuters.
“We are going to come to our conclusions based on what the Canadians have agreed to. I don’t see any reason to walk away. There is no guarantee that they will get the tariffs down.”