U.S. won't renew CUSMA in current form, trade rep says
By: By Kelly Geraldine Malone - Canada's Global News
S E E D E D C O N T E N T
U.S. won't renew CUSMA in current form, trade rep says
CUSMA remains in place unless one of the partners gives six months' notice that it is pulling out. Canada and Mexico both have indicated they want to keep the deal in place.
The United States Trade Representative Jamieson Greer says the U.S. is not renewing the Canada-U.S.-Mexico Agreement "in its current form" — but the trade agreement will remain in place as negotiations continue.
"The United States will continue to engage with Mexico and Canada to address the Agreement's shortcomings and our trade deficits with these countries," Greer said in a statement Wednesday.
"However, the Agreement remains in force pending resolution of these issues or until the Agreement's termination."
This decision triggers a rolling annual review for up to a decade, at which point it will expire if an extension isn't agreed upon.
Greer had a virtual meeting with Canada-U.S. Trade Minister Dominic LeBlanc and Mexico Secretary of Economy Marcelo Ebrard earlier Wednesday to discuss the trade pact's future. It was the deadline for all three partners in the pact, better known as CUSMA, to indicate whether they wanted the deal renewed.
Canada and Mexico previously said they were looking for a 16-year extension.
"We agreed on the importance of continuing our discussions and identifying ways to ensure trade and investment frameworks between Canada, the United States and Mexico continue to support North American prosperity and competitiveness," LeBlanc said in a statement.
"For Canada, this includes substantive discussions with the United States on addressing sectoral tariffs on Canadian steel, aluminum, autos and lumber."
In a video in Spanish posted on social media, Ebrard said Mexico is not in a hurry but the country also does not want the uncertainty of prolonged annual reviews.
The trade agreement has shielded Canada and Mexico from many of U.S. President Donald Trump's tariffs. Both countries are being slammed by Trump's separate sectoral tariffs on industries like steel, aluminum, automobiles and cabinetry.
CUSMA was negotiated during the first Trump administration to replace the North American Free Trade Agreement. The sometimes tumultuous negotiations served as an early test of Ottawa's approach to the Trump administration but ultimately all three countries hailed the agreement as a success.
But Trump has continued to cast doubt on CUSMA's future since his return to the White House and his embrace of a sweeping tariff campaign. He has called the agreement "irrelevant" and has said it may have served its purpose.
CUSMA remains in place unless one of the partner countries gives six months' notice that it is pulling out. It's unclear whether the Trump administration can take that action without the approval of Congress.
Trade negotiations between Mexico and the United States have launched but Ottawa and Washington have not started official talks yet.
LeBlanc said Canada is approaching the trade discussions "from a position of strength and with the goal of preserving and strengthening one of the most successful trading relationships in the world."
"At a time of global economic uncertainty, Canada is a stable, reliable and trusted partner," he said. "We have the energy and natural resources the world needs, a world-class workforce, and a predictable business environment attracting the highest investment in decades."
Carlo Dade, director of international policy and the New North America Initiative at the University of Calgary's School of Public Policy, said the blown deadline doesn't mean much to the future of CUSMA "as long as there is constructive work and dialogue occurring."
"I think the market is adjusting to a new normal of uncertainty with the U.S.," Dade said in an email. "That said, awareness of the reality also means greater awareness of the cost."
Dade said some members of the Trump administration have indicated that the U.S. still values the trade agreement.
Greer has said there are "pillars" of the continental trade pact that work well. Commerce Secretary Howard Lutnick and senior Trump adviser Peter Navarro have been much more critical.
"Trump is negotiating in public, so we have to discount, heavily discount, what he says, view it through the lens of his seeking leverage," Dade said.
Andrew Hale, a fellow at Advancing American Freedom — a conservative advocacy group founded by former U.S. vice-president Mike Pence — said CUSMA was a major achievement during the first Trump administration and he credits former United States trade representative Robert Lighthizer for following the law while being a tough negotiator.
Trump's trade actions are now sowing "chaos" and many people in the administration "don't get Canada," Hale said.
"They're so unpredictable and it's so chaotic. If I knew what their strategy was, I could make a gold mine. It's like asking me if I have a crystal ball."
While trade talks will continue, the uncertainty discourages long-term investment because of the deep integration among all three countries, Hale added. If negotiations continue for a long time, he said, it could diminish North America's global competitiveness.
Annual consultations could also bring increased trade frictions, Hale said, because they "are never usually harmonious with the Trump administration."
"They push people right to the edge of the cliff every time they have these negotiations," he said.
— With files from Sarah Ritchie in Ottawa
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Way back when Trump started with the tariffs on Canadian goods I posted here that it was time for Canada to start diversifying its markets, with China as a great start because it sure as hell wouldn't refuse Canadian energy, minerals and lumber. IMO opening up Canada's sale of Canola oil and purchase of Chinese EVs should only be a start. Since Trump is set to put Canadian autoworkers out of work, open up a big BYD vehicle manufacturing plant to give the unemployed autoworkers an alternative place to work. China has become a stable reliable customer and supplier - so for God's sake take advantage and let Trump stew in his own ignorant malfeasance. Look what that schmuck has done to the fantastic relationship that had for so long existed between America and Canada, between Americans and Canadians. Does any other nation in the world enjoy living beside what was such a friendly and reliable ally and neighbour?
Mexico is trying to do the same thing with some of the shuttered plants there, specifically to avoid the 100% tariff and Los Angeles is one of their two designated intial markets.
They also are red hot and can wait out the Trump years.
Nope.
I don't think the "Big Three" were unhappy with NAFTA, and then CUSMA, but I wonder how they feel about what Trump is going to screw up. He's obviously not a believer in the adage "If it ain't broke, don't fix it."
If you need an official 2025 Ford charging station, I have hundreds available as the dealers were stuck with them after Trump stuck a knife in the EV rebates and incentives.
We are now probably a decade behind BYD and will never recover because Trump sees the world through his bank account and thinks with his tiny parts.
Well, what can I say? Trump wants everyone to use gas, not electricity, it's "Drill baby drill!!!". Unfortunately, as France and environs is finding out these days, and America will find out any day now, "Drill, baby drill" is being accompanied with "Burn, baby burn".
Greer has drunk the Kool Ade and accepts the Trump misconceptions about the tariffs and trade deficits.
It's been like opposite day every day and may last a bit longer, hopefully not much longer.