LeBlanc Headed to Washington to Meet Trump’s Trade Official Ahead of Looming CUSMA Review

Canada-U.S. Trade Minister Dominic LeBlanc is scheduled to meet with U.S. Trade Representative Jamieson Greer in Washington on June 2 amid continuing trade tensions ahead of the upcoming review of the Canada–United States–Mexico Agreement (CUSMA). LeBlanc’s spokesperson said he will be accompanied by Canada’s Chief Trade Negotiator Janice Charette.

The trip stateside comes following a May 26 meeting between LeBlanc and provincial and territorial trade ministers where the future of North American trade and preparation for the CUSMA review took place.

Ottawa’s stated desire to negotiate with Washington ahead of the review has not occurred, although Mexico has already begun trade talks with the Trump administration ahead of the July 1 CUSMA review.

US Position

For his part, Greer has indicated growing frustration with Canada, saying May 26 that while most nations have “begrudgingly” accepted tariffs as a core component of the Trump administration’s trade policies and still continued to negotiate in spite of that, “Canada’s approach has been different.”

He added that it is “hard to see where that ends,” when asked about negotiations between Ottawa and Washington regarding CUSMA and Canada’s response to Trump’s tariffs.

“Our sense is that we have, with Canada, some trade challenges,” he added.

Greer’s comments appeared to be in reference to Canada placing retaliatory duties on certain U.S. goods in March of last year, initiating dispute proceedings under CUSMA, and urging Washington to remove U.S. tariffs on Canadian goods.

Ottawa later rolled back many of its counter-tariffs on Sept. 1 of last year, although it maintained duties on steel, aluminum, and automobiles.

While the U.S. Supreme Court invalidated many of Trump’s broad tariffs in February of this year, sectoral tariffs on Canadian steel, aluminum, copper, automobiles, certain furniture items, and lumber still remain under separate statutes.

Greer also suggested May 26 that tariffs will keep being deployed by the United States as it works to improve its North American supply chain.

“I think on some of these issues it’s going to be a challenging negotiation, but in some sectors of the economy it has been fine and it will be fine,” Greer added.

For his part, LeBlanc has said “continued collaboration” with the United States is crucial for Canada’s economy.

“Minister LeBlanc reaffirmed the importance of continued collaboration to support Canadian workers, businesses and economic growth,” noted a May 26 release from Global Affairs Canada.

“Minister LeBlanc reiterated that Canada remains ready to engage constructively with the United States and Mexico while continuing efforts to preserve stable and predictable market access for Canadian businesses.”

CUSMA Review

CUSMA replaced the North American Free Trade Agreement (NAFTA) and keeps in place tariff-free access for most goods, provides rules for sectors such as automobiles, agriculture, and digital commerce, and includes mechanisms for resolving trade disputes.

Prime Minister Mark Carney has previously said roughly 85 percent of Canadian exports to the United States are still exported duty-free under the agreement.

The agreement, which was signed in the fall of 2018, commits the three countries to conduct a joint review every six years, at which point they decide to renew it for a full term of 16 years, exit the agreement, or decline to renew for a full term but still remain in the pact.

For her part, Charette has said Canada does not wish to change the agreement and added that the July 1 review is not the final deadline for resolving all disputes or ongoing matters with the United States and Mexico.

“We have no appetite to revise or rewrite CUSMA,” Charette commented in April during an event with the Canadian Chamber of Commerce.

Greer, meanwhile, has said the Trump administration is not likely to easily agree to renew the agreement, saying in December of last year that he plans to “keep the president’s options open” and will recommend renewing CUSMA “only if resolution can be achieved” on a number of concerns with Canada.

Greer has said American concerns include Canada’s supply-managed dairy sector, disputes over digital streaming revenue, and other long-running trade disputes such as on softwood lumber.

The top trade representative has noted that energy, critical minerals, and fertilizer are all examples of trade flow that has been left “untouched” by U.S. tariffs and are mutually beneficial to both Washington and Ottawa.

Trump froze trade talks with Ottawa last year after stating disapproval of an Ontario government advertising campaign run in the United States that quoted former President Ronald Reagan criticizing trade tariffs. Trump said the ad misrepresented what Reagan said.

Earlier this year, there appeared to be indications of an improvement, however, when LeBlanc and Charette along with Canada’s Ambassador to the United States Mark Wiseman met with Greer in Washington.

Approximately three-quarters of Canadian merchandise exports go to the United States, and industry and trade groups in Canada have said that uncertainty around the upcoming CUSMA review could negatively impact investment decisions in everything from Canadian auto manufacturing to agriculture and energy development.

The Canadian Press contributed to this report.