Canada Seeks 16-Year USMCA Renewal Amid Trade Tensions

Canada has formally requested a renewal of the North American free trade agreement with the US and Mexico, called the USMCA, as the July deadline to renegotiate the pact looms.

In Tuesday's notice of renewal, Canada-US trade minister Dominic LeBlanc requested that the deal be renewed for another 16 years, calling the agreement "highly beneficial" to all three countries.

It comes as LeBlanc is in Washington for a meeting with US trade representative Jamieson Greer.

Greer has concluded the latest round of formal bilateral talks with Mexico, but negotiations with Canada have lagged behind, with the two sides appearing at odds over sector-specific tariffs and automobile manufacturing.

Prime Minister Mark Carney has said publicly that he wants sector-specific tariffs imposed on Canadian steel, aluminium, automobiles and lumber removed or lowered, while Greer has indicated that Canada may have to accept some form of US tariffs.

The US, meanwhile, has cited multiple trade irritants with Canada, including the decision by most Canadian provinces to remove American liquor from shelves due to tariffs imposed by President Donald Trump.

It also wants greater access to Canadian markets for American businesses, specifically dairy, where Canada has strict control over production quotas and imports to support local farmers.

Last week, Greer said that he will also be discussing increasing the percentage of US content in North American-made cars, as well as co-ordinating external tariffs on other countries with Canada and Mexico.

In its talks with Mexico, the US has asked that vehicles made in North America contain at least 50% American-made content, according to Reuters.

Speaking to reporters on Tuesday, Carney said that cars made in Canada already contain around that amount of US content.

In a speech in New York last week, he said a stronger Canadian economy would also support growth in US.

"Canada Strong will help make America great again," he said.

Domestic pressure has been building on the prime minister to reach a deal, with the Conservative opposition citing Canada's lagging economic growth and high youth unemployment rate.

"What is the plan?" asked Jasraj Singh Hallan, a Conservative MP at a news conference on Tuesday morning, calling Carney a "grand illusionist" who has failed to deliver on his promise of growing Canada's economy.

Greer has blamed the slower pace of Canada-US negotiations on Canada's decision to retaliate against the US for its tariffs, compared to Mexico.

"Two countries in the world retaliated against us: The People's Republic of China and Canada," he told reporters last week. "So they're just in a different spot, and it's hard to see necessarily where that ends."