Canada has officially asked for a 16-year renewal of the USMCA - the North American free trade agreement with the US and Mexico - as the July deadline to renegotiate the pact looms like a particularly anxious relative at a family dinner.
In Tuesday's notice, Canada-US trade minister Dominic LeBlanc requested the deal be extended for another 16 years, calling it "highly beneficial" to all three countries, which is diplomatic-speak for "please don't make us do this every few years." LeBlanc is currently in Washington to meet US trade representative Jamieson Greer, who just wrapped up talks with Mexico while Canada's negotiations have lagged like a slow Wi-Fi connection.
LeBlanc argued the USMCA gives North American countries a competitive global advantage, while admitting there's room for improvement - code for "we know you have complaints." He added that Canada is "willing to consider any proposal that can be beneficial to all three nations' long-term prosperity," and noted that discussions on sectoral tariffs will be essential.
Prime Minister Mark Carney wants sector-specific US tariffs on Canadian steel, aluminium, automobiles and lumber removed or lowered. Greer has hinted Canada may have to accept some US levies, while the US has cited trade irritants like Canadian provinces removing American alcohol from shelves in retaliation for Trump's tariffs. The US also wants greater access to Canadian dairy markets, where Canada tightly controls production quotas and imports to support local farmers.
Last week, Greer said he'll discuss increasing US content in North American cars and coordinating external tariffs with Canada and Mexico. The US has asked that vehicles contain at least 50% American-made content; Carney noted Canadian cars already average around that. In a speech in New York, he declared, "Canada Strong will help make America great again," which is either a clever slogan or a hostage note, depending on your perspective.
Domestic pressure is building on Carney, with Conservative MPs citing lagging economic growth and high youth unemployment. Conservative MP Jasraj Singh Hallan called Carney a "grand illusionist" who has failed on his economic promises. Greer blamed slower Canada-US talks on Canada's retaliation against US tariffs, noting that only China and Canada retaliated. President Trump has not commented recently on trade talks but revived his "51st state" rhetoric on Truth Social, sharing an article about Canada's lagging economy.
Carney acknowledged "some weakness" in the economy but denied a recession, saying his government is working on a "stronger, more resilient, and more independent Canadian economy." If the three countries don't agree to extend the USMCA by July 1, the pact will renew annually until 2036 - essentially a decade-plus of kicking the can down the road.