Canada formally requested a 16-year renewal of the United States-Mexico-Canada Agreement on Tuesday, and Canada-US Trade Minister Dominic LeBlanc was in Washington for face-to-face talks with US Trade Representative Jamieson Greer as the July 1 deadline to renegotiate the trilateral trade pact draws near.
LeBlanc, who submitted the formal notice of renewal, called the pact “highly beneficial” to all three countries. His visit to Washington came as Greer had already concluded the latest round of formal bilateral talks with Mexico, leaving Canada as the lagging partner in negotiations that have exposed significant differences between Ottawa and Washington.
The talks, which began in March, have revealed several sticking points. Prime Minister Mark Carney has publicly stated that he wants US sector-specific tariffs on Canadian steel, aluminum, automobiles, and lumber removed or lowered. Greer has countered that Canada may have to accept some form of US tariffs. The US has also asked that vehicles made in North America contain at least 50% American-made content, according to Reuters. Carney told reporters Tuesday that cars made in Canada already contain approximately that amount of US content.
The US has cited multiple trade irritants with Canada. Most Canadian provinces have removed American liquor from shelves in retaliation for tariffs imposed by President Donald Trump. The US also wants greater access to Canada’s protected dairy market, where strict control over production quotas and imports supports local farmers.
Speaking to reporters in New York last week, Carney argued that a stronger Canadian economy would benefit the US. “Canada Strong will help make America great again,” he said.
Domestic pressure has been building on Carney to reach a deal. The Conservative opposition has cited Canada’s lagging economic growth and high youth unemployment rate. Conservative MP Jasraj Singh Hallan called Carney a “grand illusionist” who has failed to deliver on his promise to grow Canada’s economy, asking, “What is the plan?”
Greer blamed the slower pace of Canada-US negotiations on Canada’s decision to retaliate against US tariffs, unlike Mexico. “Two countries in the world retaliated against us: The People’s Republic of China and Canada,” Greer told reporters last week. “So they’re just in a different spot, and it’s hard to see necessarily where that ends.”
If all three countries do not agree to extend the USMCA by July 1, the pact would have to be renewed annually until 2036.