TORONTO — Canada and the U.S. will launch formal discussions to review their free trade agreement in mid-January, the office of Canadian Prime Minister Mark Carney said.
The prime minister confirmed to provincial leaders that Dominic LeBlanc, the country's point person for U.S-Canada trade relations, ''will meet with U.S. counterparts in mid-January to launch formal discussions," Carney's office said in a statement late Thursday.
The United States-Mexico-Canada trade pact, or USMCA, is up for review in 2026. U.S. President Donald Trump negotiated the deal in his first term and included a clause to possibly renegotiate the deal in 2026.
Carney met with the leaders of Canada's provinces on Thursday to give them an update on trade talks with the U.S.
Canada is one of the most trade-dependent countries in the world, and more than 75% of Canada's exports go to the country's southern neighbor. But most exports to the U.S. are currently exempted by USMCA.
Trump cut off trade talks to reduce tariffs on certain sectors with Carney in October after the Ontario provincial government ran an anti-tariff advertisement in the U.S. That followed a spring of acrimony, since abated, over Trump's insistence that Canada should become the 51st U.S. state.
Carney said earlier Thursday that Canada and the U.S. were close to an agreement at the time on sectoral tariff relief in multiple areas, including steel and aluminum. Tariffs are taking a toll on certain sectors of Canada's economy, particularly aluminum, steel, auto and lumber.
Carney also said trade irritants flagged this week by U.S. Trade Representative Jamieson Greer are elements of a ''much bigger discussion'' about continental trade. Greer said a coming review of the Canada-U.S.-Mexico trade deal will hinge on resolving U.S. concerns about Canadian policies on dairy products, alcohol and digital services.
