Canada to Renew USMCA Agreement for 16 Years

Canada’s Minister of Trade, Dominic LeBlanc, has written to the United States and Mexico outlining his recommendations for renewing a trilateral trade agreement between the three countries. The letter suggests that Canada should participate in parallel talks on sectoral tariffs before meeting with US Trade Representative Jamieson Greer later today.

LeBlanc’s suggestions are part of the Joint Review process, which aims to assess the United States-Mexico-Canada Agreement (USMCA) and identify areas for improvement. The letter notes that addressing sectoral tariffs will be essential in reviewing the agreement.

The US imposed tariffs on steel, aluminum, and cars, which have had a negative impact on Canada’s economy. LeBlanc is due to meet Greer later today, accompanied by Canada’s chief trade negotiator, Janice Charette.

Canada was excluded from bilateral talks between the US and Mexico last week, which discussed revising the USMCA. The US Trade Representative’s office reported that the two countries concluded their first round of bilateral talks on revising the agreement, covering topics such as automotive rules of origin, steel and aluminum trade, and economic security.

If all three countries fail to agree to extend the pact, it would move to annual reviews until 2036. Greer has indicated that Canada may need to accept some tariffs if it wants to engage in reviewing the agreement. The revised deal is expected to include stricter automotive rules of origin and greater access to Canadian markets for US businesses.

Separately, Prime Minister Mark Carney stated that a stronger Canadian economy would support growth in the US, and expressed his desire to renew the trilateral trade agreement.

Source: Al Jazeera