Canada and Mexico Unite to Face Trade Uncertainty
Prime Minister Mark Carney and Mexican President Claudia Sheinbaum agreed on Friday to closely coordinate their efforts as potentially turbulent talks commence on renewing a trilateral trade pact with the United States.
The two leaders spoke Friday about the upcoming review of the United States-Mexico-Canada Agreement, the Prime Minister’s Office said in a readout. And they pledged “close coordination to address shared economic priorities and challenges, and deliver greater certainty, security, and prosperity for their peoples.”
A source familiar with the talks said the call was requested by Canada. The Globe and Mail is not identifying the source because they were not authorized to discuss the matter publicly. The PMO declined comment.
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Mexico has a trade mission scheduled to Canada in early May, led by the country’s Secretary of Economy, Marcelo Ebrard. The mission will visit Montreal and Toronto. It remains to be seen whether Mr. Ebrard will make a side trip to Ottawa.
Canada’s ambassador to Washington, Mark Wiseman, faced questions from MPs Thursday about why Mexico has its first USMCA negotiating round with the United States scheduled for May 25, but Ottawa has no dates set for its own bilateral talks with the Americans.
Mr. Wiseman replied that Canada stands ready to begin talks.
The Globe and Mail reported earlier this week, citing sources, that before formal negotiations have even begun, the U.S. has been asking Ottawa for upfront concessions to address its concerns with Canadian trade practices.
Mr. Carney said this week that the U.S. will not be dictating the terms of the USMCA talks.
Janice Charette, Canada’s chief trade negotiator to the U.S., warned Tuesday the country “could be facing some turbulence” ahead as Ottawa tries to preserve the existing USMCA – which allows most Canadian goods to enter the U.S. duty free – and resolve a series of U.S. tariffs that are damaging the steel, aluminum and auto sectors.
On Friday, Mr. Carney and Ms. Sheinbaum discussed “opportunities to expand collaboration in strategic areas such as critical minerals, clean technologies, energy, and advanced manufacturing,” the PMO said.
The two leaders discussed the crisis in Cuba, marked by repeated power grid failures, blackouts and acute fuel shortages. “They exchanged views on ongoing efforts to support the Cuban people, including through coordination with international partners,” the PMO said.
Mr. Carney’s office said during their call the Prime Minister and the President looked forward to the 2026 FIFA World Cup this summer. It will be the first World Cup co-hosted by three countries – Canada, Mexico, and the U.S. – and is projected to contribute $2-billion to the Canadian economy.
The USMCA’s formal review date is July 1, but both Canadian and American officials have said they expect negotiations to extend beyond that date.
The three countries must decide whether to extend the agreement for another 16 years, or move to annual reviews for 10 years, after which it will expire if they don’t agree to extend it. Any of the three parties can also withdraw from the agreement with six months’ notice.
This article was first reported by The Globe and Mail
