Canada formally proposes to renew the USMCA

Ottawa, June 2 (Xinhua) -- According to Canadian media reports on the 2nd, the Canadian government has proposed to the governments of the United States and Mexico to renew the "United States Mexico Canada Agreement".

According to reports, Dominic Lebron, the Canadian government's minister in charge of trade with the United States, suggested in a letter to US Trade Representative Jamison Greer and Mexican Economy Minister Marcelo Ebrard to renew the free trade agreement for 16 years to avoid triggering the statutory annual review process.

LeBron said in the letter, "One or both parties to the agreement may wish to propose improvement suggestions in certain areas to enhance North America's competitiveness. Canada looks forward to continued engagement with the United States and Mexico." He also said, "Parallel discussions with the United States on resolving industry tariffs are crucial

According to the relevant provisions of the USMCA, the three countries will conduct the first tripartite joint review of the USMCA in July this year. After review, there are three options: renew for 16 years, withdraw from the agreement, and neither renew nor withdraw temporarily. Choosing the third option will trigger an annual review mechanism, and before the agreement expires, the three parties will negotiate to determine whether to maintain or revise the agreement.

The Office of the United States Trade Representative announced on May 27th that the United States and Mexico have finalized three rounds of bilateral negotiations on revising the USMCA, but did not mention Canada. LeBron will travel to Washington on June 2nd to hold talks with US Trade Representative Greer.

The USMCA was signed in 2018, officially came into effect in July 2020, and expires in 2036.