Canada-US Trade Minister Heading to Washington to Discuss USMCA

Canada-U.S. Trade Minister Dominic LeBlanc is travelling to Washington on March 6 for talks on the United States-Mexico-Canada Agreement (CUSMA/USMCA).

LeBlanc had said on Feb. 26 that he would travelling to Washington for “friendly” trade talks with U.S. Trade Representative Jamieson Greer.

“I think we’re getting to a position where the United States will get specific with Canada and Mexico about specific things that they may want to see adjusted, and we’re ready for those conversations,” LeBlanc said during a fireside chat at Canadian Club Toronto.

LeBlanc said the conversations between Canada, Mexico, and the United States had been “not discouraging” and that he was “not pessimistic” about the prospects of the USMCA being renewed.

Prime Minister Mark Carney said during a media availability on March 4 in Australia that Canada’s free trade with the United States “effectively has been broken in the short term” by U.S. actions, such as placing tariffs on Canada.

“That’s the reality. That puts us in a position where we need to build on what we have in order to re-establish that trust commercially,” Carney said, adding that more than 85 percent of Canada’s trade with the United States remains tariff-free under the USMCA.

U.S. President Donald Trump has announced several rounds of tariffs on Canada, including 50 percent on steel, aluminum, and copper; 25 percent on vehicles and auto parts; 25 percent on upholstered furniture, kitchen cabinets, and vanities; and 10 percent on oil and potash.

However, in a Feb. 20 ruling, the Supreme Court struck down Trump’s International Emergency Economic Powers Act tariffs. The oil and potash tariffs were nullified, and the 35 percent tariffs on Canadian exports not covered under the USMCA are no longer in effect, although the U.S. president has said he will impose 15 percent global tariffs. These won’t apply the products covered by the USMCA.

Carney said Ottawa is seeking to address “issues in certain sectors” in its engagement with the United States as part of the USMCA review.

The three countries could agree to renew the USMCA at upcoming talks in July, which would lead to the trade agreement remaining in force until 2032. However, if the renewal is denied or delayed, the agreement could enter a period of annual reviews.

If one or more countries withdraw from the trilateral agreement altogether, the three countries could then make bilateral agreements.

Various U.S. administrations have said Canada’s supply management system for dairy and poultry products, which includes tariffs of up to 300 percent after quotas are reached, are a trade irritant. The Liberal government has pledged to defend supply management in Canada.

In preparation for the upcoming USMCA review in July, Carney appointed former Privy Council Clerk Janice Charette to lead negotiations.

The Canadian Press contributed to this report.