Montreal (AFP) – Canada and Mexico on Tuesday called for a 16-year renewal of the North American free trade agreement with the United States, in hopes of binding the three countries to a pact that President Donald Trump has openly questioned. The agreement is vital for Canada and Mexico, as the US is their main trading partner and the destination for 75 and 80 percent of their exports, respectively.
In a letter Monday, Ottawa’s minister in charge of Canada-US trade Dominic LeBlanc said, “Canada recommends the renewal of the agreement for another 16 years.” Addressed to US Trade Representative Jamieson Greer and Mexico’s Economy Secretary Marcelo Ebrard, the letter was penned a day before LeBlanc headed to Washington for talks on the future of the United States-Canada-Mexico Agreement (USMCA). Afterward, LeBlanc called Tuesday’s meeting “positive,” adding that discussions will continue in “coming days and weeks.”
At a press conference in Mexico City, Ebrard echoed the call for “the agreement to be extended for 16 years.” Parties to the USMCA have until July 1 to indicate whether they simply want to renew the agreement or renegotiate. Trump signed and praised the USMCA during his first term but now calls the deal “irrelevant.” In his current term, Trump also imposed punishing tariffs on key Canadian sectors, like autos, and maintains that the US does not need anything produced in Canada. He has also persistently mused about annexing Canada, including this week, when he reacted to a story about Canada’s struggling economy by posting “51st State!” Trump claims Canada would be stronger if absorbed into the US.
The US and Mexico wrapped up their initial round of USMCA revision talks last week. US officials have broadly praised Mexico’s approach to trade negotiations while mocking Canada and insulting Prime Minister Mark Carney, who has become one of Trump’s most prominent critics on the world stage. Despite the friction in US-Canada relations, Greer has said that he envisions preserving parts of the USMCA.
In his letter, LeBlanc said the agreement “is highly beneficial to each of our countries,” citing figures that trilateral trade had increased 32 percent since the USMCA came into force in 2020. But LeBlanc added Canada understands the US and Mexico “may wish to propose areas where improvements may be warranted,” adding that for Ottawa, addressing Trump’s sector-specific tariffs “will be essential.”
© 2024 AFP
