Canada calls for US and Mexico free trade agreement to be renewed for another 16 years

Canadian Prime Minister Mark Carney makes an address at the Canadian Association of Defense and Security Industries' annual defense industry trade show, CANSEC, in Ottawa, on Wednesday.

Canadian Prime Minister Mark Carney makes an address at the Canadian Association of Defense and Security Industries' annual defense industry trade show, CANSEC, in Ottawa, on Wednesday. (Justin Tang, Canadian Press via AP)


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Estimated read time: 2-3 minutes

KEY TAKEAWAYS
  • Canada urges renewal of U.S.-Mexico-Canada Agreement for another 16 years.
  • Minister Dominic LeBlanc sent a letter to U.S. and Mexico officials Tuesday.
  • Ontario Premier Doug Ford rebukes Trump's "51st State" comment on social media.

TORONTO — Canada is calling on the United States and Mexico to renew the free trade agreement between the countries for another 16 years.

Dominic LeBlanc, Canada's minister for U.S. trade, sent a letter Tuesday to United States Trade Representative Jamieson Greer and Mexico's Secretary of Economy Marcelo Ebrard conveying Canada's recommendation.

"The Agreement is highly beneficial to each of our countries and to the integrated North American economy," LeBlanc wrote.

The letter comes ahead of the scheduled July review of the United States-Mexico-Canada Agreement, or USMCA, the latest iteration of a North American free-trade pact that has intertwined the economies of the United States, Mexico and Canada since the early 1990s.

LeBlanc and Canada's Chief Trade Negotiator, Janice Charette, are in Washington on Tuesday to meet with Greer. LeBlanc has previously warned that the free trade agreement could be subject to annual reviews and that uncertainty could be the objective of the Trump administration.

On Monday, President Donald Trump posted "51st State!" on social media, linking to a news article reporting that Canada is falling into a technical recession. The post was later reposted by U.S. Ambassador to Canada, Pete Hoekstra.

"I can't believe I have to say this again, but Canada will never be the 51st state. Canada is not for sale," Ontario Premier Doug Ford posted in response on Tuesday.

Canadian Prime Minister Mark Carney acknowledged some weakness in the country's economy as he walked into Cabinet on Tuesday. Carney said the U.S. has about 30 trade irritants with Canada, compared with nearly 60 with Mexico.

The U.S. could withdraw from the agreement with six months' notice. There could be annual reviews going forward, or it can be renewed for another 16 years.

"There is a possibility of a new partnership there," Carney said.

The USMCA has allowed Canada and Mexico to avoid much of Trump's protectionist measures because many Mexican and Canadian goods are covered by the free trade agreement. But there are some key specific tariffs on things like aluminum that are damaging the integrated North American economy.

Trump's talk of making Canada the 51st state has infuriated Canadians, who have been canceling trips to the U.S. in big numbers.

Illinois Gov. JB Pritzker, one of the Democratic Party's leading presidential prospects, said Trump has tried to destroy the relationship with America's northern neighbor with "chaotic tariffs and mindless cruelty." Pritzker made the comments in a Zoom call with Democrats Abroad on Tuesday.

The Key Takeaways for this article were generated with the assistance of large language models and reviewed by our editorial team. The article, itself, is solely human-written.

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Rob Gillies

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