Canada and Mexico Coordinate Strategy for USMCA Review

Canada and Mexico are coordinating a joint strategy to preserve the United States-Mexico-Canada Agreement (USMCA) as a July 1 deadline approaches to decide on a 16-year renewal. Dominic LeBlanc, Canada's minister responsible for Canada-U.S. trade, recently led a trade mission of over 370 delegates to Mexico City, Monterrey, and Guadalajara. During the visit, LeBlanc met with President Claudia Sheinbaum to align interests on trilateral issues such as rules of origin and signed 15 commercial partnerships to boost bilateral ties.

These diplomatic efforts come as U.S. President Donald Trump suggests the U.S. might abandon the trilateral pact in favor of separate bilateral deals. Trump has intensified pressure on Ottawa, threatening 100% tariffs on all Canadian imports following a pact between Canada and Beijing to reduce tariffs on Chinese electric vehicles. He further threatened to ground Canadian aircraft and block a new trade bridge between Detroit and Canada over aircraft certification disputes.

U.S. Trade Representative Jamieson Greer has characterized negotiations with Canada as a challenge, specifically citing the refusal of some provinces to sell U.S. wine and spirits. LeBlanc is seeking a meeting with Greer in the coming weeks to resolve these irritants and stabilize relations, which had frozen following Trump's frustration over an Ontario-sponsored advertisement and Canada's ties with China.