‘This agreement is highly beneficial’: Trade minister wants CUSMA renewed as Trump revives 51st state threat

Playing null of undefined

U.S., Canadian officials work through ‘series of technical issues’ amid CUSMA deadline: PM Carney

Minister LeBlanc in Washington to talk trade ahead of CUSMA negotiation

Trump lowers tariffs on selected steel and aluminum products

OTTAWA — In a letter to his counterparts in the United States and Mexico, Canada-U.S. Trade Minister Dominic LeBlanc says he wants to renew the countries’ trilateral trade deal for another 16 years and opt out of an annual review process.

“This agreement is highly beneficial to each of our countries and to the integrated North American economy,” LeBlanc wrote in a letter to U.S. Trade Representative Jamieson Greer and Mexican Secretary of Economy Marcelo Ebrard.

“The growth and success brought forward by our historic trilateral trade agreement is why I am confirming that Canada recommends renewal of the agreement for another 16 years,” he also wrote.

• READ MORE: Canada minister responsible for U.S. trade to meet with USTR’s Greer

LeBlanc is set to travel to Washington on Tuesday, along with Canada’s Chief Trade Negotiator Janice Charette, for a meeting with Greer, as the CUSMA review deadline fast approaches.

By July 1, officials must notify their counterparts whether they want to renew CUSMA for a 16-year period or agree to an annual review process.

“Canada recognizes that either or both other parties to the agreement may with to propose areas where improvements may be warranted to strengthen North American competitiveness,” LeBlanc wrote in his letter to Greer and Ebrard, adding Canada “looks forward to continued engagement” with the U.S. and Mexico.

“In parallel, discussions with the United States on addressing sectoral tariffs will be essential,” he also wrote.

Canada and the U.S. have been in a protracted trade war for more than a year, after U.S. President Donald Trump slapped a slate of tariffs on Canadian imports. While the vast majority of products are tariff-free because they’re covered under CUSMA, several sectoral levies are still in place.

As the July 1 deadline approaches, the U.S. and Mexico say they’re making progress on their formal bilateral talks, but Canada has not been engaged in formal negotiations.

And, U.S. officials — Greer in particular — have made it clear based on their rhetoric that they want to review certain aspects of CUSMA and are unlikely to renew it for the 16-year period.

Ahead of his trip to Washington on Tuesday morning, LeBlanc was on Parliament Hill for a cabinet meeting, but he did not take questions from reporters.

Trump, meanwhile, revived his threats of making Canada the 51st state on Tuesday, sharing a news headline by Bloomberg that Canada has dipped into a technical recession, and adding: “51st state!”

• READ MORE: Donald Trump revives ‘51st State’ threats after Canada slips into technical recession

Speaking to reporters ahead of a cabinet meeting on Parliament Hill Tuesday, Prime Minister Mark Carney said there’s a “series of … technical issues” the U.S. has with Mexico, which explains their more extensive bilateral discussions ahead of the July 1 deadline.

“But for us, there’s the more fundamental structural issues, as people know, which relate to the so-called strategic sectors, that’s the American term, the 232 tariffs that are on automobiles, on steel, aluminum, forest products, particularly,” Carney also said.

“We’re looking to determine whether there’s a possibility of a new partnership there.”

Wanting to respond to the prime minister’s comments, Conservative Leader Pierre Poilievre also spoke to reporters on Parliament Hill Tuesday morning, taking questions in the hallway just outside the closed-door Liberal cabinet meeting.

“It’s ridiculous, and it’s never going to happen,” Poilievre said, when asked by CTV News’ Rachel Aiello about Trump’s latest 51st state comments. “And we have to make sure that we don’t allow ridiculous comments like that to distract us from the very real suffering that Canadians are experiencing as a result of Liberal policies here at home.”

Referencing LeBlanc’s imminent trip to Washington, Poilievre accused the Canada-U.S. trade minister of frequently visiting D.C. to “socialize and come back empty-handed,” adding the Mexicans have been “eating our lunch for the last six months.”