OTTAWA, Jan 26 - Canada will approach the formal review of the U.S.-Mexico-Canada Agreement later this year with an expectation that the process will be rigorous, the prime minister said on Monday. He portrayed U.S. President Donald Trump as a formidable negotiator and suggested that recent pointed remarks from Washington should be seen in that light.
The three-nation trade pact came into effect in July 2020. In recent days, the president has made a series of public comments aimed at Canada, including saying that Canada "lives because of the United States" and, on Saturday, threatening to impose a 100% tariff on all Canadian imports if Ottawa were to conclude a trade agreement with China. The prime minister noted that such statements should be understood in the broader negotiating context.
On the timing and tone of the coming review, he said: "We are entering soon a negotiation, a review, formally, of the USMCA ... it will be a robust review, is the expectation." He added that: "The President is a strong negotiator, and I think some of these comments and positioning should be viewed in the broader context of that."
The prime minister's remarks came amid a broader pattern of comments from the president, who has frequently mused about annexation, and who earlier this month declared that the United States did not need the USMCA, calling it irrelevant. The recent volley of statements includes both questioning the agreement's importance and the threat of sweeping tariffs on Canadian goods if Canada were to deepen trade ties with China.
Officials have signaled that a formal negotiation or review of the agreement is approaching, and the prime minister framed the expected talks as likely to be assertive in nature. Beyond his characterization of the U.S. leader as an aggressive negotiator, he emphasized that some of the recent public positioning by the president should be viewed in the context of that negotiating stance rather than as a stand-alone policy announcement.
Summary
The prime minister said a formal review of the USMCA will be robust and cautioned that recent critical comments from the U.S. president are part of a broader negotiating posture. The USMCA has been in effect since July 2020 and recent U.S. statements have included a disputed claim that Canada "lives because of the United States," a threat of 100% tariffs on Canadian imports tied to a potential Canadian-China deal, and a prior remark calling the agreement irrelevant.
Key points
- The formal review of the USMCA is expected to be thorough and forthcoming.
- The prime minister described the U.S. president as a strong negotiator and urged that recent comments be seen in that negotiating context.
- The USMCA entered into force in July 2020; recent U.S. statements have included threats of a 100% tariff on Canadian imports if Canada signs a deal with China.
Risks and uncertainties
- Escalating public rhetoric from the U.S. president, including threats of sweeping tariffs, introduces uncertainty for cross-border trade relations and exporters.
- The upcoming USMCA review may be contentious given the president's stated negotiating posture and prior comments calling the agreement irrelevant.
- Recent statements could affect confidence among businesses engaged in trade between the three USMCA countries while the formal review is pending.