With about six weeks until the joint review of the United States-Mexico-Canada Agreement, trade officials and heads of state responsible for the future of the trilateral trade truce are hoping to hash out terms to ensure its survival.
On Monday, U.S. Trade Representative (USTR) Ambassador Jamieson Greer met with Mexican President Claudia Sheinbaum in Mexico City to discuss the state of trade and economic relations between the North American neighbors, with Greer praising Sheinbaum for her work toward expanding bilateral cooperation.
Mexican Secretary of Economy Marcelo Ebrard, also in attendance, along with Greer, directed their respective teams to continue technical discussions this week surrounding economic security and complementary trade actions, including strengthening rules of origin for key industrial goods and collaborating on the trade of critical minerals.
Greer and Ebrard committed to meeting again on May 25 for their first official bilateral negotiating round ahead of the July 1 review. According to a report from Reuters, Greer told representatives of Mexico’s steel and auto industries that any renegotiation of the trade pact would likely not include a drawdown in tariffs on their industries.
Still, it’s safe to say that Mexico is in pole position when it comes to negotiations with the U.S.
The country’s government has, in recent months, taken concrete steps toward revamping its trade laws with an eye toward U.S. cooperation. For example, Sheinbaum in December announced the approval of tariffs worth up to 50 percent on hundreds of China-originating goods, including steel, autos, textiles, apparel and footwear. The Mexican government also implemented changes to its Customs Law, or Ley Aduanera, on Jan. 1, which will augment customs enforcement while authorizing harsh penalties for violators.
By contrast, trade relations between the U.S. and Canada remain tenuous and conversations have been icy. With much on the line and, Prime Minister Mark Carney this week announced the formation of a Canada-U.S. advisory committee that will provide guidance in negotiations as the review process ramps up.
Chaired by federal minister for Canada-U.S. trade relations Dominic LeBlanc, the committee is made up of two dozen former lawmakers and business leaders well-versed in issues of trade, investment and labor, including Conservative Party leader Erin O’Toole, former Liberal cabinet minister Ralph Goodale, former Quebec premier Jean Charest, CN Rail CEO Tracy Robinson, TC Energy CEO François Poirier, Automotive Parts Manufacturers’ Association president Flavio Volpe, Unifor union president Lana Payne and Canadian Chamber of Commerce CEO Candace Laing.
“Canada’s new government is forging a new economic and security relationship with the United States,” Carney’s office said in a statement. “As Canada approaches the Joint Review of the Canada-United States-Mexico Agreement (CUSMA), our aim is to preserve that unique Canadian advantage and to build on it.”
The prime minister, who has traded barbs with President Donald Trump over the past year, has not minced words when speaking publicly about the state of the relationship between the U.S. and Canada.
“Here’s the current situation. The world… is more dangerous and divided. The U.S. has fundamentally changed its approach to trade, raising its tariffs to levels last seen during the Great Depression,” he said in a televised address to Canadians on Sunday. “Many of our former strengths, based on our close ties to America, have become our weaknesses, weaknesses that we must correct.”
Carney went on to say that some of Canada’s most robust industries—steel, autos and lumber—are under threat due to the tariffs imposed by the U.S. “Businesses are holding back investments restrained by the pall of uncertainty that’s hanging over all of us. The U.S. has changed, and we must respond,” he added.
The prime minister has expressed a desire to see USMCA continue forward as a trilateral agreement despite Trump’s claims that the deal has become “irrelevant” and insistence that Canada “needs” the pact more than the U.S. does. But in the face of such cool treatment from its biggest consumer market and trading partner, Carney has been touting the virtues of building and buying domestic—and forging stronger relationships with other partners.
“‘Canada Strong’ is our plan to build Canada by Canadians, for Canadians. It will attract new investment so we can build more for ourselves, striking new partnerships abroad”—like partnerships with the Mercosur nations and China—“so we can sell into new markets.”
It’s about taking back control of our security, our borders and our future,” he said.
