Canada’s trade negotiator says USMCA review is a checkpoint, not a cliff, and warns not all US trade issues will be resolved by July 1, with Ottawa focused on protecting the deal while seeking tariff relief.
Summary:
- Canada sees July 1 USMCA review as a checkpoint, not a deadline
- No expectation all US trade disputes will be resolved by then
- Agreement remains in place even if issues persist
- Formal negotiations with the US have not yet begun
- Focus remains on tariffs (steel, autos, aluminium, lumber)
- Canada aims to protect core USMCA framework, not renegotiate it
- Annual review risk flagged as a source of business uncertainty
Canada’s top trade negotiator to the United States, Janice Charette, signalled that expectations for a comprehensive resolution of bilateral trade issues by the July 1 USMCA review deadline are unrealistic, but stressed that any delay would not jeopardise the agreement itself.
Speaking publicly for the first time since assuming the role in February, Charette characterised the July deadline as a “checkpoint” rather than a hard cutoff, pushing back against market and business concerns that unresolved disputes could trigger instability in North American trade relations. Her comments came during a panel hosted by the Canadian Chamber of Commerce in Ottawa.
The United States-Mexico-Canada Agreement (USMCA), known domestically as CUSMA in Canada, is due for review by July 1 under provisions requiring the three countries to assess and extend the pact every six years. If the agreement is not formally extended, it would shift into an annual review process, an outcome business groups warn could inject uncertainty into investment decisions, hiring plans, and long-term supply chain commitments.
Despite the looming review, Charette confirmed that Canada has yet to begin formal negotiations with Washington. However, engagement has taken place on key sectoral disputes, including U.S. tariffs on Canadian steel, aluminium, autos, and softwood lumber, areas that have been persistent sources of friction and have weighed heavily on Canadian exporters.
Charette emphasised that the breadth of outstanding issues, combined with competing global priorities for the United States, makes it unlikely that all matters can be resolved within the current timeframe. Even so, she underscored that the agreement itself would remain intact regardless of whether negotiations conclude by July.
The USMCA framework has helped shield Canada from a broader wave of global tariffs imposed by the U.S., leaving it with one of the lowest effective import tariff rates among U.S. trading partners. Against that backdrop, Charette made clear her mandate is focused on preserving the core structure of the agreement rather than reopening foundational elements.
At the same time, Ottawa is seeking targeted relief from existing U.S. tariffs and aiming to resolve long-standing disputes in key industries. The approach reflects a balance between defending the stability of the current trade framework and addressing sector-specific pressures that continue to challenge Canada’s export competitiveness.
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I wonder why Canada view the deadline as so flexible?
