Canada has officially requested a 16-year renewal of the USMCA trade agreement with the United States and Mexico, as negotiations move closer to a critical July deadline.
Trade Minister Dominic LeBlanc, currently in Washington for talks with US officials, described the agreement as “highly beneficial” for all three countries and said Canada supports extending it to ensure long-term economic stability. He also noted that Canada is open to improvements that benefit all partners.
The move comes as Mexico has also signalled support for a long-term extension, while US-Canada discussions have progressed more slowly compared to recent US-Mexico talks.
Tensions remain over several issues, including US tariffs on Canadian steel, aluminium, automobiles, and lumber. Prime Minister Mark Carney is pushing for those tariffs to be reduced or removed, while US officials have suggested Canada may need to accept some form of trade levies as part of any deal.
Washington has also raised concerns over Canada’s dairy market protections, restrictions on US alcohol sales in some provinces, and is seeking higher US content requirements in North American-made vehicles.
Canadian officials argue that the existing agreement already provides strong economic advantages and that many vehicles already include significant US-made components.
Opposition leaders in Canada have increased pressure on the government, questioning the pace of negotiations amid slower economic growth and rising unemployment. Meanwhile, US officials have suggested that Canada’s earlier retaliation against tariffs has made talks more complex than with Mexico.
Prime Minister Carney has said Canada is focused on building a stronger, more resilient economy, while also stressing that Canadian growth supports the US economy.
If the three countries do not agree on a renewal by July 1, the agreement will automatically move to annual extensions until 2036.
(Source: BBC News)
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