OTTAWA: Canada has formally requested a 16-year renewal of the United States-Mexico-Canada Agreement (USMCA), as negotiations over the future of North America’s free trade framework intensify ahead of a critical July deadline.
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In a notice issued on Tuesday, Canada-US Trade Minister Dominic LeBlanc described the agreement as highly beneficial for all three member countries and called for its extension through 2042. The USMCA, known as CUSMA in Canada, is scheduled for review under provisions agreed upon when the pact came into force in 2020.
Canada Open to Improvements in Trade Pact
LeBlanc acknowledged that certain aspects of the agreement could be strengthened and said Canada remains willing to consider proposals that support the long-term economic prosperity of Canada, the United States, and Mexico.
He emphasized that discussions with Washington on sector-specific tariffs would remain a key part of ongoing negotiations.
“Canada recognizes there are areas where the agreement can be improved and is prepared to consider proposals that benefit all three nations,” LeBlanc said.
Tariff Issues Remain a Major Concern
Prime Minister Mark Carney has repeatedly called for the reduction or removal of tariffs imposed by the United States on Canadian steel, aluminum, automobiles, and lumber exports.
However, US Trade Representative Jamieson Greer has suggested that Canada may need to accept some level of American tariffs as part of a broader trade arrangement.
LeBlanc is currently in Washington for meetings with Greer, while the United States has already concluded a recent round of bilateral trade discussions with Mexico.
US Raises Concerns Over Canadian Market Access
The United States has highlighted several trade concerns involving Canada, including restrictions affecting American products.
Among the issues raised is the removal of US alcoholic beverages from store shelves in several Canadian provinces following trade disputes linked to tariffs. Washington is also seeking greater access to Canada’s dairy market, which is protected through supply management policies that regulate production and imports.
Greer recently indicated that discussions would also focus on increasing the percentage of US-made content in vehicles manufactured across North America and coordinating external tariffs with Canada and Mexico.
According to reports, the United States has proposed that vehicles produced within the region contain at least 50 percent American-made components.
Carney Defends Canada’s Economic Position
Speaking to reporters on Tuesday, Prime Minister Carney noted that Canadian-made vehicles already contain approximately 50 percent US content on average.
He also argued that a stronger Canadian economy would contribute positively to economic growth in the United States.
Domestic political pressure has been mounting on the Canadian government as opposition lawmakers continue to criticize weak economic growth and rising youth unemployment.
Conservative Member of Parliament Jasraj Singh Hallan questioned the government’s economic strategy, calling for clearer plans to boost growth and investment.
Future of USMCA Hinges on Upcoming Negotiations
Trade tensions between Canada and the United States have slowed the pace of negotiations compared with talks involving Mexico. Greer has previously linked the slower progress to Canada’s decision to impose retaliatory measures against US tariffs.
Meanwhile, former US President Donald Trump has continued to make remarks about Canada’s economic challenges, reviving his controversial “51st state” rhetoric in recent social media posts.
If Canada, the United States, and Mexico fail to agree on a renewal by July 1, the USMCA would move into a process requiring annual renewals until its scheduled expiration in 2036.
Trade officials across North America are expected to continue negotiations in the coming weeks as all three countries seek to secure long-term economic stability and maintain one of the world’s largest free trade regions.
