UNIPA News,03 June(Mexico)-Canada and Mexico have formally proposed a 16-year extension of the United States-Mexico-Canada Agreement (USMCA), seeking long-term stability for North America’s trade framework as the three countries approach a key deadline on the future of the pact.
In a letter addressed to U.S. Trade Representative Jamieson Greer and Mexico’s Economy Secretary Marcelo Ebrard, Canadian Minister for Canada-U.S. Trade Dominic LeBlanc recommended renewing the agreement for another 16 years. The proposal comes ahead of a July 1 deadline for member countries to indicate whether they wish to renew the agreement or pursue renegotiation.
LeBlanc discussed the issue during meetings in Washington and later described the talks as positive, saying discussions would continue in the coming days and weeks.
Mexico also backed the proposal. Speaking at a press conference in Mexico City, Economy Secretary Marcelo Ebrard called for the agreement to be extended for an additional 16 years.
The USMCA remains a critical trade framework for both Canada and Mexico, with the United States serving as their largest export market. Approximately 75 percent of Canadian exports and 80 percent of Mexican exports are destined for the U.S. market.
The agreement, which replaced the North American Free Trade Agreement (NAFTA), entered into force in 2020. According to LeBlanc, trilateral trade among the three countries has increased by 32 percent since the pact took effect.
Despite signing and promoting the USMCA during his first term, U.S. President Donald Trump has recently questioned the relevance of the agreement. His administration has also imposed tariffs on several Canadian industries, including the automotive sector, creating additional trade tensions between the two neighboring countries.
The United States and Mexico completed their first round of discussions on possible revisions to the agreement last week. U.S. officials have generally expressed satisfaction with Mexico’s approach to the negotiations.
While differences remain, particularly over sector-specific tariffs, LeBlanc said Canada recognizes that both the United States and Mexico may seek improvements to certain aspects of the agreement. He emphasized, however, that resolving U.S. tariff measures affecting Canadian industries will be a key priority for Ottawa in any future discussions.
The outcome of the renewal process is expected to shape North American trade relations for years to come, with governments and businesses closely monitoring negotiations ahead of the July deadline.
