U.S. Ambassador to Canada Pete Hoekstra said Thursday that Washington is seeking to renew the U.S.-Mexico-Canada Agreement (USMCA) but is running into opposition from Canada as a mandatory review date of July 1 draws near. Hoekstra delivered his remarks at the Canadian Crops Convention in Toronto.
The ambassador said the U.S. views the trade pact - known in Canada as CUSMA - as having functioned well, but he stressed that there have been no substantive negotiations with Canada since October. That gap in talks, he said, has contributed to what he described as "headwinds" in efforts to reach an agreement.
"I think we want to get to an agreement, but we are facing some headwinds in the negotiations," Hoekstra said, citing the lack of substantive discussions since October.
Hoekstra urged Canadian officials and businesses to take steps to secure placement in the lowest tariff categories. He said the United States is seeking coalitions with other countries to ensure that when trade agreements are struck, non-tariff barriers to trade are removed.
The ambassador also referenced comments from U.S. President Donald Trump, saying the president has indicated there will be some tariff associated with accessing the U.S. market. Hoekstra said that Canadian government and corporate actors should make the case for why it would be advantageous for the United States to offer Canada the lowest tariff treatment.
On energy, Hoekstra suggested closer bilateral cooperation. He noted that the United States already imports significant quantities of Canadian oil and natural gas, that much of that energy is processed in the United States, and that Washington would like to expand the partnership.
Taken together, the ambassador's comments underscore two concurrent threads: an unresolved negotiating dynamic on USMCA renewal and a desire from the U.S. side to deepen commercial ties in energy while pressing Canada on tariff positioning and removal of non-tariff barriers.