Prime Minister Mark Carney held discussions with Mexican President Claudia Sheinbaum on Friday in anticipation of the upcoming review of the North American trade agreement this year. The leaders focused on various topics, including the forthcoming evaluation of the Canada-U.S.-Mexico Agreement (CUSMA), as highlighted in a statement from the Prime Minister’s Office.
Both leaders agreed to collaborate closely to tackle mutual economic priorities and challenges, aiming to provide enhanced certainty, security, and prosperity for their citizens. Earlier in the week, Sheinbaum engaged with U.S. Trade Representative Jamieson Greer. While the U.S. and Mexico are preparing to commence official talks on CUSMA at the end of next month, Canada has not confirmed a similar start date yet.
According to the agreement’s terms, July 1 is the deadline for the three countries to either approve a renewal of the existing pact or indicate their intention to withdraw, with a potential exit process lasting up to a decade. Discussions are expected to extend beyond the specified date, as expressed by U.S. and Canadian officials.
Janice Charette, Canada’s chief trade negotiator, disclosed that based on her conversations with Greer, the U.S. is likely to negotiate specific details with Canada and Mexico separately. She described the process as having both a bilateral and trilateral aspect, akin to a supplementary bilateral component attached to the CUSMA framework.
Apart from CUSMA, Carney and Sheinbaum also delved into bilateral relations during their conversation. A Mexican trade delegation is slated to embark on a tour of three Canadian cities starting in May, featuring bilateral trade discussions between government representatives. This visit follows one of the largest Canadian trade missions to Mexico in February, covering Mexico City, Guadalajara, and Monterrey.
The call between the two leaders occurred amidst the imposition of U.S. tariffs on steel and aluminum impacting both countries. President Donald Trump recently announced immediate tariff relief for Canadian and Mexican aluminum and steel companies if they commit to relocating production to the United States in the future.
Addressing the results of a successful Team Canada Trade Mission to Mexico earlier this year, which resulted in over 20 new commercial partnerships and agreements, Carney welcomed Mexico’s forthcoming trade mission to Canada. The leaders also expressed gratitude for each other’s support and cooperation following an unfortunate incident where a Canadian tourist was fatally shot in Mexico.
In related news, concerns were raised over U.S. sectoral tariffs, with disputes aired publicly by officials in Canada and the U.S. Greer criticized Canadian provinces for removing U.S. alcohol from shelves during a congressional committee appearance, prompting Carney to highlight the impact of U.S. sectoral tariffs on various industries, stressing the need for collective discussions on these matters.
The intertwined nature of sectoral tariffs and CUSMA review has been a point of contention, with Greer suggesting they are separate issues, while Canadian officials emphasize the importance of addressing them together for comprehensive trade discussions.