Canada's ambassador eases tariff anxiety as CUSMA review nears
Mark Wiseman told Toronto business leaders Monday that the July 1 renewal window isn't an expiration date and urged calm as trade negotiations loom.
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Canada's ambassador to the United States is trying to lower the temperature around the Canada-U.S.-Mexico Agreement (CUSMA) as the review period approaches in just two weeks.
"Everybody take a deep breath, relax, it's all going to be OK," Mark Wiseman told a business crowd in Toronto on Monday at the Canadian Club Toronto.
Wiseman clarified that July 1 does not mark CUSMA's expiration, but rather the start of a renewal window giving the three parties a chance to iron out irritants and the option to renew for another 16 years. CUSMA is set to expire in 2036; a renewal would extend that to 2042. If the parties don't agree to a renewal, CUSMA will be subject to an annual rolling review for up to 10 years.
"It doesn't matter if we work through those issues and conclude that review on July 2 or conclude that review in January, or if we never, frankly, conclude the review," Wiseman said. "The agreement remains in place through 'til 2036."
U.S. President Donald Trump has openly mused about walking away from the deal he negotiated in his first term. Wiseman noted that the United States can trigger the exit clause with six months' notice at any point — not just after July 1. However, he pointed to U.S. Trade Representative Jamieson Greer saying the United States wants to preserve the "pillars" of CUSMA as reason to avoid panic.
The vast majority of Canadian exports to the United States have been protected from Trump's blanket tariffs because they comply with CUSMA. But the agreement has not exempted major Canadian industries such as steel, aluminum, and autos from duties imposed under Section 232 of the U.S. Trade Expansion Act.
Wiseman said those tariffs are "biting" the Canadian economy and are the current focus of Canada's negotiating team in Washington. While official CUSMA trade negotiations between Ottawa and Washington have yet to begin, talks between the United States and Mexico have started.
Asked about the tone of negotiations, Wiseman said talks were "productive, serious, informed and respectful," and downplayed Trump's recurring claim that the United States doesn't need anything from Canada. He noted that while trade talks dominate Canadian conversation, attention is limited in the United States, where other issues take precedence.