The United States Trade Representative’s office announced in a press release this week that it will conduct three rounds of negotiations with Mexico about the upcoming Canada–United States–Mexico Agreement (CUSMA) review on July 1 – all of which will continue to exclude Canada from the discussions.
While Canada-U.S. Trade Minister Dominic LeBlanc has indicated he will head to Washington next week,
Canada’s Chief Trade Negotiator Janice Charette and Prime Minister Mark Carney’s Office of the Privy Council have remained tight-lipped about the upcoming CUSMA review.
rabble.ca had an opportunity to do a Question and Answer with the Privy Council Office this week, to clarify some expectations about the next phase of negotiations with the United States and Mexico.
1. What’s it like working with the USTR right now. Is it actually adversarial or confrontational? Jamieson Greer has made several remarks in the past few months indicating that it might be, so we’re trying to filter out political theatre from reality.
Canada continues to be a ready and willing trading partner, favouring durable outcomes built on comprehensive and pragmatic solutions and not short-term fixes.
The proposals Canada has advanced are serious and substantive, having the potential to generate hundreds of billions of dollars in economic value for American industries and workers in exchange for real relief from the unfair tariffs imposed on Canadian products.
As is appropriate, Canada does not negotiate publicly and will continue to engage through diplomatic channels in a manner that reflects the seriousness and importance of these discussions.
2. Can you give me an indication of how your office is working with Mexico directly at this point? Are there effects from the recent Mexican Trade missions that relate your work in any way?
Canada recently held the latest round of its own bilateral engagements with Mexico, and those discussions were very positive and productive.
Canada remains fully prepared for any and all discussions with the U.S. and Mexico on trade issues and we are engaged in substantive and concrete discussions with both countries. We are confident in the strength of our position.
As we near the joint review of the CUSMA, we are engaging on a continuous basis with industry and labour representatives as well as provincial and territorial governments to ensure that we can exchange relevant information and keep key partners up-to-date.
We have been clear and consistent with the United States that we are ready to launch the joint review the moment they are. There continues to be meetings between Canadian and American trade officials on a regular basis.
With respect to the upcoming U.S.-Mexico meetings, discussions between any two partners are a normal part of diplomatic engagement, as they serve to address issues particular to that bilateral relationship.
To be clear, any review or renegotiation of the core structure of CUSMA, including foundational elements such as rules of origin, cannot happen without Canada. Canada is committed to maintaining the CUSMA as a trilateral agreement, and any consideration of changes or modifications requires all three parties at the table.
Canada continues to advance its own bilateral discussions, remains in close contact with both partners, and stands ready to move forward with trilateral negotiations as soon as all three parties are prepared to engage together.
3. What are the issues that are being prioritized in the CUSMA review?
Canada and the United States share one of the most comprehensive and mutually beneficial economic relationships in the world, and Prime Minister Carney’s remarks reflect our commitment to deepening that partnership in a way that works for both countries.
Examples of sectors where deeper integration holds the most significant potential include energy, steel and aluminum, softwood lumber, agriculture, and the automotive sector.
These are areas where our two economies are already deeply integrated, where Canadian inputs form part of high-value supply chains, and where a strengthened, rules-based trading framework can deliver real benefits for workers, farmers, businesses, and communities on both sides of the border.
It is also important to remember that more than 70 per cent of what Canada sends across the border is not finished consumer goods. They are inputs like energy, raw materials, critical minerals, aluminum, steel that go directly into American manufacturing.
In short, Canadian exports do not displace American production but rather help make it possible and increase the ability of companies in both countries to compete globally.
That said, the Canada-U.S. relationship extends well beyond any single sector or agreement.
More broadly, Canada shares the U.S.’s concerns about unfair competition from non-market economies and has taken steps to protect our industries from unfair trade practices, for example in the steel and aluminum sectors. We are prepared to work collaboratively with the U.S. in this regard.
