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Prime Minister Mark Carney and Mexican President Claudia Sheinbaum have committed to a unified approach as they prepare for potentially fraught negotiations regarding the renewal of the trilateral United States-Mexico-Canada Agreement (USMCA). In a conversation on Friday, the two leaders emphasised their intention to work closely on shared economic interests and challenges, as outlined by the Prime Minister’s Office (PMO).
A Strategic Dialogue
The dialogue between Carney and Sheinbaum comes amid anticipation of a significant review of the USMCA. As per the PMO’s statements, both leaders pledged to collaborate effectively to enhance economic certainty, security, and prosperity for their nations. A source familiar with the discussions indicated that Canada initiated the call, although the PMO opted not to comment further.
Mexico is set to lead a trade mission to Canada in early May, spearheaded by Secretary of Economy Marcelo Ebrard, which will include stops in Montreal and Toronto. It remains uncertain if Ebrard will make a visit to Ottawa during this trip.
Canada’s Position in the Negotiations
Questions have arisen in the Canadian Parliament regarding why Mexico has already scheduled its first round of USMCA negotiations with the United States for May 25, while Canada has yet to establish any date for bilateral discussions. In response to inquiries from MPs, Canada’s ambassador to Washington, Mark Wiseman, asserted that Ottawa is prepared to commence talks.
Reports suggest that even before formal negotiations have begun, the U.S. has been requesting concessions from Canada to alleviate concerns regarding Canadian trade practices. Carney has made it clear that the U.S. will not dictate the terms of the upcoming discussions.
Janice Charette, Canada’s chief trade negotiator, has cautioned that the path ahead may be rocky. Ottawa is determined to protect the existing USMCA framework, which allows most Canadian goods to enter the U.S. tariff-free, while also seeking resolution to a series of U.S. tariffs that are adversely impacting Canada’s steel, aluminium, and automotive sectors.
Expanding Collaborative Efforts
During their call, Carney and Sheinbaum also explored avenues for expanding cooperation in strategic sectors such as critical minerals, clean technologies, energy, and advanced manufacturing. The leaders took the opportunity to discuss the ongoing crisis in Cuba, characterized by severe power grid failures and fuel shortages. Both expressed their commitment to supporting the Cuban populace in coordination with international partners.
The conversation also touched on the upcoming 2026 FIFA World Cup, which will mark the first time three countries—Canada, Mexico, and the U.S.—co-host the tournament. This event is projected to inject approximately $2 billion into the Canadian economy.
The Future of the USMCA
The formal review of the USMCA is set for July 1, but officials from both Canada and the U.S. have indicated that negotiations are likely to extend beyond this date. The three nations face a critical decision: whether to extend the agreement for an additional 16 years or shift to annual reviews over the next decade, after which the agreement would expire unless renewed. Each party retains the right to withdraw from the agreement with six months’ notice.
Why it Matters
As the USMCA negotiations loom, the collaboration between Carney and Sheinbaum signals a crucial step in addressing shared economic challenges. With pressures from the U.S. and the need to safeguard Canadian interests, the outcomes of these talks will not only shape the trade landscape for Canada and Mexico but will also have broader implications for North American economic stability. The stakes are high, and the commitment to cooperation could prove pivotal in navigating the complexities of international trade in a rapidly changing global environment.
