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LeBlanc to hold first trilateral call with U.S., Mexico counterparts on July 1 deadline for CUSMA renewal
OTTAWA — As Canada turns 159 today, the country prepares to enter a phase where its free trade deal with the United States and Mexico could become more uncertain by making it subject to annual reviews.
Prime Minister Mark Carney has downplayed the prospect of all three parties agreeing to extend the deal, known in Canada as the Canada-United States-Mexico-Agreement (CUSMA) for another 16-year term, telling reporters the day before while visiting northern Quebec that he “wouldn’t expect any drama,” while adding that “I’m not looking for my pen.”
Putting pen to paper on a deal that would see U.S. President Donald Trump agree to extend the trade pact as well as remove or lessen tariffs on Canadian goods like steel and aluminum has been an elusive goal for Carney, who came to office last year on a promise of striking a deal with the unpredictable president.
July 1 marks a key deadline in the free trade agreement struck between Canada, the U. S. and Mexico. On that date, parties must agree to extend the deal for another 16-years. Failing to do so would trigger a process that would see the agreement reviewed annually until it expires in 10-years time. Any party wishing to withdraw from the agreement would have to provide six months notice.
Failing to reach agreement by July 1 does not preclude the parties from agreeing to an extension at another date afterwards.
Canada and Mexico have both recommended a 16-year extension on the deal. Wednesday marks the first time all three countries will hold a virtual call on the matter, with Dominic LeBlanc, the minister responsible for Canada-U.S. trade, leading the conversation for Canada, with Jamieson Greer joining in his capacity as the U.S. Trade Representative.
The U.S. has not yet formally indicated its position on what it wants to do with the agreement, with Trump having spent the past few months saying he does not want to see the deal extended, while at other times expressing he may sign on.
Among the trade issues for the U.S. that Greer has named are the ban on American booze on several provincial liquor shelves, its digital policies, such as the Online Streaming Act, and the federal push to source more materials from Canadian suppliers.
Canadian lawmakers, as well as Janice Charette, whom Carney appointed as the country’s chief negotiator with the U.S., have spent the past few months downplaying the impact of not seeing all three parties agree to extend the deal, with Charette likening the July 1 deadline as being more of “checkpoint” than a “cliff.”
Speaking to reporters last week, Carney, who confirmed that he had last spoke to Trump ahead of the upcoming NATO summit in which CUSMA did not come up in their conversation, repeated his often used statement that he could strike a deal with the president at anytime, but that he was focused on securing one of quality.
“We’re not going to sign a bad deal, so it has to be a real deal,” Carney said last week.
More to come …
National Post
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