Canada sends letter to US, Mexico calling for renewal of trade agreement

by The Canadian Press

Canada has sent a letter to the United States and Mexico recommending that the three countries renew the continental trade pact.

The letter from Canada-U.S. Trade Minister Dominic LeBlanc to United States Trade Representative Jamieson Greer and Mexico’s Secretary of Economy Marcelo Ebrard is required as part of the mandatory review of the U.S.-Mexico-Canada Agreement on trade.

USMCA
(Photo: iStock)

“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 said.

While official trade talks between Canada and Washington have yet to begin, the United States and Mexico have started their negotiations.

The trade pact has shielded Canada and Mexico from the worst impacts of U.S. President Donald Trump’s tariffs. The current 10% global duty does not apply to goods compliant with USMCA. Canada is still being slammed by Trump’s separate tariffs on industries like steel, aluminum, automobiles, and cabinetry.

USMCA was negotiated during the first Trump administration to replace the North American Free Trade Agreement. Greer also has said he’d be open to two separate bilateral agreements but has noted that aspects of USMCA work very well.

The review sets up a three-way choice for each country to make. They can renew the deal for another 16 years, withdraw from it or signal both non-renewal and non-withdrawal — which would trigger an annual review that could keep negotiations going for up to a decade.

LeBlanc’s letter pushed for the 16-year renewal.

“Canada looks forward to continued engagement with both the United States and Mexico on opportunities to expand our trading partnership and is willing to consider any proposal that can be beneficial to all three nations’ long-term prosperity,” he said in the letter.

“In parallel, discussion with the United States on addressing sectoral tariffs will be essential.”


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