A joint review of the U.S.-Mexico-Canada Agreement was expected to be technical, but rising friction between U.S. and Canadian officials is pushing the trade pact toward a potential breaking point ahead of the July 1 deadline. [1]
The three countries must decide by July 1 whether to extend the agreement for another 16 years. U.S. officials want to block China from using Mexico or Canada as a back door into the North American market, a point that has been especially sensitive in Ottawa. [1]
Trade experts and lawyers said they could not rule out a collapse of the trilateral deal. U.S. officials have been meeting with Mexico’s top economic officials on a bilateral basis while Canada has been left aside as tensions rose. [1]
Jamieson Greer said, “There are two countries that have retaliated economically against the United States in the past year: the People's Republic of China and Canada,” in a sign of how sharply Washington views the dispute. Rick Switzer said, “We have issues with Mexico we're still working through, but Mexico intends on coming to an agreement with us,” pointing to separate talks with Mexico. [1]
The strain has also spilled into trade retaliation. Most Canadian provinces have banned U.S. wine and liquor from their shelves in response to President Trump’s earlier tariffs. [1]
Axios reported on April 29 that the North American trade deal was already under unusual strain amid U.S.-Canada barbs. The next concrete deadline is July 1, when the three governments must decide whether to keep the pact in force for another 16 years. [1]