US, Canada, Mexico to negotiate bilateral deals alongside CUSMA

The United States, Canada and Mexico are set to discuss separate bilateral agreements as talks on extending the Canada‑U.S.‑Mexico trade pact (CUSMA) continue. Canada and Mexico have both urged a 16‑year extension, and officials say that if the July deadline passes, the pact will remain in effect under an annual rolling review for up to ten years, with the President able to give six months’ notice to withdraw.

Canadian trade minister Mary Ng (LeBlanc) expressed optimism after meeting U.S. Trade Representative Jamieson Greer in Washington and said further contacts are planned on the sidelines of the G7 in France. U.S. Ambassador to Canada Pete Hoekstra highlighted that, contrary to President Trump’s claim the U.S. “doesn’t need anything” from its northern neighbour, America relies heavily on Canadian products – more than 80 % of its potash imports, as well as oil from Alberta and automobiles from Ontario. He urged Canada to present an aggressive pitch to fill U.S. needs.

CUSMA, negotiated during the previous Trump administration to replace NAFTA, shields Canada and Mexico from many of the President’s tariffs. The current 10 % global tariff does not apply to goods compliant with CUSMA, though both Canada and Mexico continue to face separate tariff pressures on steel, aluminum and autos. While formal CUSMA negotiations between Ottawa and Washington have not yet begun, the United States has already started talks with Mexico.