Canada and Mexico will launch bilateral trade discussions in May to address the future of the United States-Mexico-Canada Agreement, as uncertainty grows over whether the U.S. will engage in trilateral negotiations under President Donald Trump.
Dominic LeBlanc, Canada’s minister for Canada-U.S. trade, and Mexico’s Economy Secretary Marcelo Ebrard announced the talks on Monday, signaling a proactive move to strengthen economic ties between the two nations. Ebrard emphasized Mexico’s preference for maintaining the trilateral nature of USMCA, though no timeline has been confirmed for U.S.-Canada discussions. Trump has floated the idea of scrapping the agreement entirely in favor of separate bilateral deals, adding pressure to the upcoming negotiations.
U.S. Trade Representative Jamieson Greer met with both LeBlanc and Ebrard last week in Washington, confirming that American and Mexican negotiators will begin bilateral talks next week. However, no date has been set for formal U.S.-Canada discussions, though LeBlanc’s team expects a follow-up conversation with Greer in the coming days. Canada aims to use these talks to push for the removal of U.S. tariffs on autos, steel, and aluminum, while facing criticism from Greer over issues like provincial liquor bans and limited access to the Canadian dairy market.
The stakes are high with a July 1 congressional deadline looming, at which point Trump must decide whether to renew, modify, or abandon USMCA. Both Canada and Mexico have expressed a desire to preserve the tariff-free trade framework, though they acknowledge the possibility of accepting baseline tariffs to maintain favored-partner status with the U.S.
Prime Minister Mark Carney, in a recent call with Trump, discussed trade alongside other global issues, though specifics remain undisclosed. Ottawa is also pursuing trade diversification, including deals with India and limited Chinese electric vehicle imports, despite U.S. objections, as a hedge against over-reliance on American markets.
As talks approach, the economic integration between Canada and Mexico—highlighted by LeBlanc’s invitation to Ebrard for a future visit—remains a focal point, with both nations bracing for potential shifts in North American trade dynamics by mid-2026.
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