Canada and the United States will spend the coming weeks working towards a trade agreement, after Prime Minister Mark Carney held what he described as a constructive call with US President Donald Trump. Carney announced the development on Sunday 1 November, two days before the US midterm elections on 3 November.

What the two leaders said

Carney said on social media that he had held a good conversation with Mr Trump, building on recent discussions about the outlines of a mutually beneficial agreement supporting jobs, affordability and Canada's languages, culture and sovereignty. He wrote that their teams would now work in the coming weeks to deliver that outcome. Mr Trump told reporters in Iowa that both countries had reached the outlines of a possible agreement, saying it could benefit American farmers while also being acceptable to Canada.

Why talks broke down in August

Formal negotiations broke down in August over proposed trade terms. Canada objected to US demands it considered harmful to its economic interests and independence, including over sovereignty, French-language protections and autos. Mr Trump then imposed a 50 percent levy on about $20 billion of Canadian goods, and Canada responded with matching tariffs on US steel, dairy, appliances, farm equipment, pulp and paper, and electronics.

No deal, and no details, yet

Neither government has released detailed terms on tariffs or market access, and neither leader announced a signed deal, a timetable or tariff changes. Carney has said Ottawa will not accept an agreement compromising Canadian priorities simply to resolve the dispute quickly, and as recently as Wednesday he had said the countries were not yet able to conclude a deal before Tuesday's vote. Canada and the EU launched a new economic and security alliance on Friday.

Sources: Associated Press via BusinessNews; Philippine Canadian Inquirer via EuropeSays.