The federal government will formally start trade discussions with the U.S. on the renewal of the Canada-U.S.-Mexico (CUSMA) free trade deal in January, Prime Minister Mark Carney’s office said in a statement.
The trade deal is up for review next year and Canada is “accelerating efforts to deepen trade relationships,” the statement said late Thursday evening after Carney briefed the premiers of Canada’s provinces on preparations for the trade talks.
Canada-U.S. Trade Minister Dominic LeBlanc will meet with his counterparts in the U.S. mid-January to advance the talks, Carney said.
In October, U.S. President Donald Trump cancelled trade talks with Canada after Ontario aired an anti-tariff ad featuring former U.S. president Ronald Reagan.
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“Prime Minister Carney reaffirmed the federal government’s commitment to protecting Canada’s economic interests throughout all CUSMA negotiations, with a clear objective: securing the best possible deal for Canada,” the statement from Carney’s office said.
Earlier on Thursday, Carney held a joint press conference with Ontario Premier Doug Ford and said Canada and the United States may not end up with specific sectoral trade deals — rather, those talks may “roll into” a renewed CUSMA.
The U.S. currently has multiple rounds of tariffs on key sectors of the Canadian economy, including steel, aluminum, autos and lumber.
While talks have been aimed at getting trade deals for those sectors that could see the U.S. tariffs lifted, Carney said that with the clock ticking towards the CUSMA review set for 2026, those talks might fold into a broader CUSMA negotiation.
“My judgment is that is now going to roll into the broader CUSMA negotiations. We’re unlikely, given the time horizon coming together, to have a sectoral agreement. Although (if) the United States wants to come back on that in those areas, we’re always ready there,” Carney said.
Earlier this week, U.S. Trade Representative Jamieson Greer told members of Congress that a review of CUSMA would depend on Canada meeting certain trade conditions, including on dairy.
Greer said Canada’s policies “unfairly restrict market access for U.S. dairy products.”
On Thursday, Carney said Canada will not budge on supply management in the dairy sector – a policy that Trump has attacked in the past.
“We’ve been clear about our approach to supply management. We continue to stand by that. We’ll continue to protect supply management,” Carney told reporters.
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