Canada seeks USMCA renewal for 16 years, sector tariff discussions

Canada is pushing for a 16-year renewal of the United States-Mexico-Canada Agreement (USMCA), seeking to address sectoral tariffs in parallel with the broader review. Trade Minister Dominic LeBlanc outlined these recommendations in a letter to the United States and Mexico, ahead of a meeting with US Trade Representative Jamieson Greer.

LeBlanc's proposal comes as Canada faces criticism for its perceived slowness in initiating the USMCA review process, which has a July 1 deadline. Mexico has been more proactive in engaging with the US administration. The upcoming meeting is significant, especially after Canada was excluded from recent bilateral trade talks between the US and Mexico.

The discussions aim to "strengthen" the agreement and adapt it to "evolving economic conditions." However, the issue of sectoral tariffs, including US levies on Canadian steel, aluminum, and cars, remains a point of contention that has impacted Canada's economy. The USMCA's future hinges on agreement among all three nations; without it, the pact moves to annual reviews until 2036.

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The Joint Review process provides us an opportunity to review the Agreement to assess whether there are ways to strengthen it and consider where improvements may be warranted to keep up with evolving economic conditions.