Canada and the United States are set to launch formal talks to review their free-trade pact in mid-January, a move confirmed by the office of Canadian Prime Minister Mark Carney.
According to a statement released late Thursday, Dominic LeBlanc, Canada’s point person for U.S.-Canada trade relations, will meet with U.S. counterparts in mid-January to begin the review process.
The United States-Mexico-Canada Agreement (USMCA) is scheduled for review in 2026. President Donald Trump negotiated the deal during his first term and inserted a clause allowing a renegotiation that year.
Carney met with provincial leaders on Thursday to brief them on the status of trade talks. He said Canada and the U.S. were close to an agreement on sectoral tariff relief in areas such as steel and aluminum, and that tariffs were impacting aluminum, steel, auto and lumber sectors.
Canada, one of the world’s most trade-dependent economies, sends more than 75 % of its exports to the U.S. Most of those goods are exempt under USMCA. However, trade irritants flagged by U.S. Trade Representative Jamieson Greer are part of a larger discussion about continental trade, according to Carney.
Greer stated that a forthcoming review will hinge on resolving U.S. concerns about Canadian policies on dairy, alcohol and digital services. Carney also noted that U.S. access to Canada’s 34 critical minerals is not guaranteed, adding, “It’s a potential opportunity for the United States, but it’s not an assured opportunity for the United States. It’s part of a bigger discussion in terms of our trading relationship, because we have other partners around the world, in Europe for example, who are very interested in participating.”
Carney and the provincial premiers agreed to meet in Ottawa early in the new year. Canada remains the top export destination for 36 U.S. states, and nearly $3.6 billion in Canadian goods and services cross the border each day. Roughly 60 % of U.S. crude oil imports and 85 % of U.S. electricity imports come from Canada, while Canada is the largest foreign supplier of steel, aluminum and uranium to the U.S.
Key Takeaways
- Canada and the U.S. will launch formal USMCA review talks in mid-January.
- Tariff relief is being negotiated for steel, aluminum, auto and lumber.
- U.S. concerns over dairy, alcohol and digital services will shape the upcoming review.
The discussions underscore the deep economic ties between the two nations and the importance of resolving trade friction points to sustain their interdependent markets.
