International
Canada urges the United States and Mexico to renew their free trade agreement for 16 years
TORONTO (AP) — Canada is calling on the United States and Mexico to renew the free trade agreement between their three countries for another 16 years, just as U.S. President Donald Trump restarts talks to make Canada the 51st state.
Dominic LeBlanc, Canada’s U.S. Commerce Minister, sent a letter to U.S. Trade Representative Jamieson Greer and Mexican Economy Secretary Marcelo Ebrard on Tuesday outlining Canada’s recommendation.
“The Agreement is extremely beneficial to each of our countries and to the integrated North American economy,” LeBlanc wrote.
LeBlanc said Canada also received letters from Greer and Ebrard. Ebrard said Tuesday that Mexico would also like to see that period extended to 16 years.
The letters come ahead of a planned July review of the United States-Mexico-Canada Agreement, or USMCA, the latest iteration of a North American free trade pact that has linked the economies of the United States, Mexico and Canada since the early 1990s. It can either be subject to annual reviews in the future or renewed for 16 years.
LeBlanc and Canada’s chief trade negotiator, Janice Charette, were in Washington on Tuesday for a meeting with Greer. LeBlanc said he presented Greer with a series of proposals addressing a number of questions the United States has been raising with Canada for some time.
“On July 1, as Ambassador Greer has publicly stated, if there is no consensus among the three parties to extend the agreement for 16 years, the agreement remains in effect for an additional 10 years and there will be a series of annual reviews,” LeBlanc said.
LeBlanc has previously said he believes the United States may want the trade deal to be subject to annual reviews and that the Trump administration may seek to sow uncertainty about the permanence of the trade deal.
Trump has repeatedly said he believes Canada would be better off as a U.S. state — sparking repeated reluctance and discontent from Canadian politicians who have made it a point to defend their country’s sovereignty. On Monday, Trump posted “51st State!” » on social media linking to a press article reporting that Canada was falling into a technical recession. The post was later reposted by the United States Ambassador to Canada, Pete Hoekstra.
Ontario Premier Doug Ford issued an angry response Tuesday: “I can’t believe I have to say this again, but Canada will never be the 51st state. Canada is not for sale.”
Canadian Prime Minister Mark Carney was asked Tuesday whether Ambassador Hoekstra should leave the country, but the Canadian leader said no.
“This is an administration that we have to work with. It’s our greatest trade relationship. It’s our greatest security relationship…we take the administration as it is,” Carney said, adding that Trump posts a lot on social media. “We are not going to respond, react to everything he posts.”
Carney earlier acknowledged some weakness in the country’s economy as he headed to a Cabinet meeting on Tuesday. Carney said the United States has about 30 different trade irritants with Canada, compared to nearly 60 with Mexico.
The United States could withdraw from the agreement with six months’ notice.
“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, as many Mexican and Canadian products are covered by the free trade agreement. But certain specific tariffs on products like aluminum harm the integrated North American economy.
Trump’s comments about making Canada the 51st state infuriated Canadians, who canceled their trips to the United States in large numbers.
Illinois Governor JB Pritzker, a leading Democratic Party presidential candidate, said Trump had tried to destroy relations with America’s northern neighbor with “chaotic tariffs and senseless cruelty.” Pritzker made the comments during a zoom call with Democrats Abroad on Tuesday.
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AP journalist Fabiola Sánchez in Mexico City contributed to this report.
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