Canada formally asked the United States and Mexico on June 2 to renew the United States-Mexico-Canada Agreement (USMCA) for 16 years, submitting a letter outlining its proposals and addressing tariff concerns [1, 2, 3, 4, 5, 6]. Mexico made a similar call for the 16-year extension [3, 4, 7].
Canada’s Trade Minister Dominic LeBlanc described recent talks with US Trade Representative Jamieson Greer in Washington as “positive and productive,” adding, "I remain optimistic about the work that we can do with the Americans ... and we have a lot of work to do between now and July 1" [1, 2, 4, 5, 6]. LeBlanc said, "I think it's in the economic interest of North America to commit to that trilateral framework for another 16 years" [6].
Key issues include US tariffs on Canadian steel, aluminum, automobiles, and lumber. Canadian and US negotiators are focusing on sector-specific tariffs and automobile manufacturing content rules [1, 3, 5, 6]. The US reportedly demands at least 50% US content in North American cars and wants to raise regional content rules to 82%, but excludes Canadian content in its calculations [1, 2].
Canada's chief negotiator Janice Charette supports renewal by achieving the lowest possible tariffs on a narrow basket of goods while maintaining broad market access for Canadian products, saying the goal is to "preserve the value of the USMCA" [2]. Prime Minister Mark Carney highlighted the need for a strong Canadian economy as central to regional growth [1, 5].
Canada exports about 70% of its goods to the US, while Mexico exports about 80% to that market [3, 4]. Canada aims to keep tariffs low and maximize access under the pact [2].
Last week, the US and Mexico held separate bilateral talks excluding Canada from negotiations, though Canada is now pushing for trilateral renewal to avoid triggering the USMCA’s annual legal review process [1, 2, 3, 5]. Canada has faced criticism for slower engagement compared to Mexico’s proactive approach [1, 5].
Dominic LeBlanc sent the initial renewal request letter on June 1 and met with US officials on June 2 [1, 2, 3, 4, 5, 6]. The formal USMCA review and decision on renewal or renegotiation must conclude by July 1 [1, 3, 5].
