LeBlanc, Greer meet as CUSMA countries gear up for talks

Dominic LeBlanc said last week that he was “not pessimistic” about CUSMA renewal and expects targeted changes rather than a full renegotiation.

United States Trade Representative Jamieson Greer and Canada-U.S. Trade Minister

Dominic LeBlanc

met Friday in Washington in the first high-level, in-person talks in months between the two men.

LeBlanc did not comment as he emerged from the discussions, other than to wish a television crew a good weekend.

The meeting comes as preparations ramp up for this year’s review of the

Canada-U.S.-Mexico Agreement

(CUSMA). Greer and

Mexican

Secretary of Economy Marcelo Ebrard this week also announced the first round of early talks to get ready for that.

President Donald Trump has privately raised

withdrawing from the deal

, Bloomberg News has reported, while Greer has said parts of it “function fine” but the

U.S. wants greater market access

in some areas.

“We will have separate protocols with Canada and Mexico that we tack on to CUSMA,” Greer said last week on Bloomberg Television.

Trump

negotiated CUSMA

in his first term to replace the North American Free Trade Agreement, which had governed trade between the three countries since 1994.

For now, the agreement shields Canada and Mexico from the harshest effects of Trump’s

global tariffs

. Most goods traded under CUSMA are exempt, though sectoral levies on autos, steel, aluminum and lumber continue to raise the cost of U.S. imports of those products from its North American neighbours.

The existing pact, which runs to 2036, leaves room for a range of negotiating formats and includes a clause allowing any country to exit with six months’ notice. The three nations could also decide to extend it, but if they don’t, they must hold annual reviews, with the first scheduled for July 1.

LeBlanc said last week that he was “not pessimistic” about CUSMA renewal and expects targeted changes rather than a full renegotiation. He also hasn’t ruled out a separate deal between Canada and the U.S. to ease sectoral tariffs. Trump called off talks on such an agreement in October, angered by a television ad against tariffs sponsored by the province of Ontario.

Rob Wildeboer, executive chairman of auto parts maker Martinrea International Inc., which operates in all three CUSMA countries, told investors that his company is “heavily involved” in discussions around trade and manufacturing. He believes the industry will push the White House for lower tariffs.

“I do believe there is huge consensus in our industry, OEMs and suppliers alike, for a tariff-free North American auto industry — autos and parts makers,” said Wildeboer, whose company is headquartered in the Toronto region but derives most of its revenue from products it ships to assembly plants outside of Canada.

“I also foresee no tariffs on Canadian-made autos eventually. That’s what we are negotiating for.”

Bloomberg.com