Canada is urging the United States and Mexico to renew their trilateral free trade agreement for another 16 years, a significant push that coincides with U.S. President Donald Trump’s renewed discussions about Canada potentially becoming the 51st state.
Dominic LeBlanc, Canada’s minister for U.S. trade, formally conveyed this recommendation in a letter sent Tuesday to U.S. Trade Representative Jamieson Greer and Mexico’s Economy Secretary Marcelo Ebrard.
LeBlanc emphasized the pact’s importance, stating, “The Agreement is highly beneficial to each of our countries and to the integrated North American economy.”
This diplomatic overture precedes the scheduled July review of the United States-Mexico-Canada Agreement (USMCA). The USMCA, the latest iteration of a North American free-trade pact that has intricately linked the economies of the three nations since the early 1990s, faces a choice: either undergo annual reviews or secure a comprehensive 16-year extension.
LeBlanc and Canada’s Chief Trade Negotiator Janice Charette were in Washington on Tuesday for a meeting with Greer. LeBlanc has said he believes the U.S. might want to have the trade agreement subject to annual reviews, and that the Trump administration might seek to cause uncertainly about the trade pact’s permanence.
Trump has repeatedly said he believes Canada would be better off as a U.S. state — prompting repeated pushback and annoyance from Canadian politicians who have made a point of defending their country’s sovereignty. On Monday, Trump posted “51st State!” on social media linking to a news article reporting that Canada is falling into a technical recession. The post was later reposted by U.S. Ambassador to Canada, Pete Hoekstra.
Ontario Premier Doug Ford issued a peeved response Tuesday: “I can’t believe I have to say this again, but Canada will never be the 51st state. Canada is not for sale.”
Canadian Prime Minister Mark Carney was asked Tuesday if Ambassador Hoekstra should leave the country, but the Canadian leader said no.
“It’s an administration that we have to work with. It’s our biggest trading relationship. It’s our biggest security relationship … we take the administration as it is,” Carney said, adding that Trump posts a lot on social media. “We’re not going to respond to, react to, everything that he posts.”
Carney earlier acknowledged some weakness in the country’s economy as he walked into a Cabinet meeting on Tuesday. Carney said the U.S. has about 30 different trade irritants with Canada compared to nearly 60 with Mexico.
The U.S. could withdraw from the agreement with six months notice.
“There is a possibility of a new partnership there,” Carney said.
The USMCA has allowed Canada and Mexico to avoid much of Trump’s protectionist measures because many Mexican and Canadian goods are covered by the free trade agreement. But there are some key specific tariffs on things like aluminum that are damaging the integrated North American economy.
Trump’s talk of making Canada the 51st state has infuriated Canadians, who have been canceling trips to the U.S. in big numbers.
Illinois Gov. JB Pritzker, one of the Democratic Party’s leading presidential prospects, said Trump has tried to destroy the relationship with America’s northern neighbor with “chaotic tariffs and mindless cruelty.” Pritzker made the comments in a zoom call with Democrats Abroad on Tuesday.
