Canada Asks for 16-Year Trade Deal Renewal
Canada has formally asked to renew the USMCA trade deal for 16 years. Canadian Trade Minister Dominic LeBlanc sent a letter to his US and Mexican counterparts.
He said all three countries should renew the deal together. LeBlanc then met with US Trade Representative Jamieson Greer on Tuesday.
Hours before the talks Trump called Canada the '51st State' on social media. The US had already started formal USMCA talks with Mexico.
But Canada was left out of US-Mexico trade talks held last week. This added pressure on LeBlanc ahead of Tuesday's meeting.
A key deadline is driving the urgency. Canada, the US and Mexico must decide by July 1 whether to extend USMCA for 16 years.
If they do not agree they enter yearly reviews for up to 10 years. After that the deal could expire.
USMCA replaced an older deal called NAFTA. It governs trade between the United States, Canada and Mexico.
Key Terms 4
- USMCA Trade deal between the US, Canada and Mexico
- NAFTA Older trade deal that USMCA replaced in 2020
- Trade Representative Official who handles trade deals on behalf of a country
- 51st State Trump's suggestion that Canada should become part of the US