CUSMA Negotiations: Canada has until July to renew its trade deal with the U.S. Here’s what happens if talks stall
Courtesy Barrie360.com
Canada is pushing for a 16-year renewal of its trade agreement with the United States and Mexico, with a critical deadline arriving in July and a U.S. trade representative who has given no guarantees.
Canada-U.S. Trade Minister Dominic LeBlanc sent a formal letter this week to U.S. Trade Representative Jamieson Greer and Mexico’s secretary of economy, Marcelo Ebrard, calling for renewal of the Canada-U.S.-Mexico Agreement on trade, known in Canada as CUSMA. The letter is a requirement of the agreement’s mandatory review process.
LeBlanc followed the letter with a meeting at the Canadian Embassy in Washington on Tuesday.
“We discussed how we can work together on a number of issues that strengthen the competitiveness of the North American economy,” he said.
What Canada is asking for
The letter made clear that Canada wants all three countries to commit to another 16 years. It also signalled flexibility.
“Canadian, American and Mexican farmers, businesses, workers and consumers are counting on the timely completion of this work to provide the certainty and stability that is essential to maintaining the conditions that not only secure their economic futures but allow them to prosper,” the letter read.
Canada said it “is willing to consider any proposal that can be beneficial to all three nations’ long-term prosperity.”
Mexico made the same ask. Ebrard called for a 16-year renewal at a press conference in Mexico City on the same day. LeBlanc said he received letters from both the U.S. and Mexican sides but would not say what they contained.
Why CUSMA matters right now
The agreement has been shielding Canadian and Mexican exporters from the full weight of U.S. tariffs. The current 10 per cent U.S. global duty does not apply to goods that comply with CUSMA rules.
CUSMA was negotiated during Trump’s first term to replace NAFTA. Since returning to office, Trump has called the agreement irrelevant and suggested it may have run its course.
LeBlanc said he raised Trump’s separate tariffs on specific Canadian industries during his closed-door talks with Greer, including steel, aluminum, automobiles, lumber and cabinetry.