LeBlanc Meets with Trump’s Trade Czar as CUSMA Review Looms

Washington D.C. – Canada-U.S. Trade Minister Dominic LeBlanc is meeting with United States Trade Representative Jamieson Greer in Washington on Friday to discuss the upcoming review of the Canada-United States-Mexico Agreement (CUSMA), amidst growing uncertainty about the trade pact’s future. The meeting comes a day after the U.S. Announced bilateral discussions with Mexico regarding the CUSMA review process.

CUSMA Review and U.S. Concerns

LeBlanc’s office stated the meeting will cover the mandatory CUSMA review and other bilateral trade concerns. While CUSMA has shielded Canada from the full impact of former President Trump’s tariffs, Trump has repeatedly expressed doubts about the agreement’s continuation .

Carney’s Assessment of CUSMA

Prime Minister Mark Carney recently stated that CUSMA has “effectively been broken in the short term by U.S. Actions,” . He emphasized the need to “re-establish the trust” necessary for trade between Canada and the U.S. During this year’s review.

Stalled Trade Talks and Ongoing Communication

Trade discussions between Canada and the U.S. Stalled in October after Trump reacted negatively to an Ontario-sponsored advertisement featuring former President Ronald Reagan criticizing tariffs. Despite this setback, LeBlanc and Greer have maintained communication via phone .

U.S. Trade Representative’s Concerns

Jamieson Greer has voiced concerns about barriers to trade with Canada, specifically citing restrictions on the sale of U.S. Wine and spirits in Canada . He indicated these issues pose challenges to initiating substantial trade negotiations.

Potential for Bilateral Negotiations

There is speculation that the U.S. And Mexico may pursue CUSMA negotiations without Canada, similar to the original NAFTA replacement negotiations during Trump’s first term. Robert Lighthizer, Trump’s former trade representative, detailed in his book how the U.S. And Mexico reached an agreement and offered Canada the opportunity to join, but were prepared to proceed bilaterally if Canada declined.

Next Steps in the CUSMA Review

The U.S. Trade Representative’s office announced that Greer and Mexican Secretary of Economy Marcelo Ebrard have instructed their negotiators to begin a “scoping discussion” on CUSMA. The first meeting is scheduled for the week of March 16th, with regular meetings to follow .

CUSMA’s Future Options

The CUSMA review in July presents three options: renew the agreement for another 16 years, withdraw from it, or signal non-renewal and non-withdrawal, which would trigger annual reviews for up to a decade.