Canada seeks 16-year extension of USMCA trade agreement

Canadian Trade Minister Dominic LeBlanc has sent a letter to his North American counterparts calling for an extension of the US-Canada-Mexico trade agreement (USMCA). The agreement governs free trade between the three nations and its extension is critical for the region's economy.

Canadian Trade Minister Dominic LeBlanc sent an official letter to his North American counterparts in the US and Mexico calling for an extension of the trilateral free trade agreement USMCA by 16 years. This step marks Canada's formal position in negotiations concerning one of the world's largest trading blocs.

USMCA, the trade agreement between the United States, Mexico and Canada, has regulated trade relations between the three countries since 2020 and replaced the earlier NAFTA agreement. The agreement provides for regular reviews during which it is possible to decide on its continuation, modification or termination.

LeBlanc stressed in his letter that all three countries should jointly support the continuation of the agreement to ensure stability and predictability in the continent's economic relations. For Canada, free trade with the US is vital, as the majority of the country's exports are destined for its southern neighbour's markets.