USMCA

USMCA Renewal in Focus as US Hits Canada with New Tariffs

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USMCA – Canada Officially Requests Renewal as U.S. Triggers Forced Labor Protection Tariffs

USMCA – Canada Officially Requests Renewal as U.S. Triggers Forced Labor Protection TariffsSundance – A rather ironic sequence of events as Canada formally requests to renew the USMCA (CUSMA) trade agreement for 16-years, followed a day later by the U.S. announcing additional tariffs toward 60 countries including Canada.

On Tuesday, Dominic LeBlanc, the trade minister from Canada assigned to USMCA negotiations, traveled to Washington DC for a meeting with U.S. Trade Representative Jamieson Greer.

LeBlanc, reflecting the obtuse nature the Canadian trade delegation is now well known for, seemed oblivious to the friction points in the U.S. position and formally requested the trade deal be renewed for another 16 years. {Citation}

LeBlanc called the agreement “highly beneficial” to all three countries. From the Canadian position this may be true, but that’s not even remotely what the U.S. team has presented in private and public comments. Continue reading →

The Real Reason Canada Won’t Open USMCA for Talks

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Canada Does NOT Want to Open USMCA (CUSMA) for Renegotiations

Sundance – Consider the amount of money involved in the trilateral USMCA trade agreement. It’s not just about trade and commerce between the USA, Canada and Mexico; the totality of the equation is derived from all of the third-party nations who trade into the North American trade bloc. There are tens-of-trillions at stake.

As we have outlined for several years the trilateral trade agreement has several material flaws. With the U.S. economy as the primary consumption economy, both Mexico and Canada derive significant benefits within the USMCA. Additionally, both Canada and Mexico leverage their unique positions to gain economic benefit from third parties who want to use either country as a backdoor into the U.S. market. Continue reading →

Unpacking Trump’s Trade Game: US-Canada Relations Explained

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Canadian Officials Continue Wondering Why Trump Administration Projects Ambivalence Toward U.S-Canada Trade Deal

Canadian Officials Continue Wondering Why Trump Administration Projects Ambivalence Toward U.S-Canada Trade DealSundance – The reality of the U.S-Canada economic relationship and the position of President Donald Trump is not that difficult to understand if you take all the disparate datapoints and quotes from Trump and put them into context.

During a White House meeting with Mark Carney, President Trump essentially told the Canadian Prime Minister why he was in no hurry to get to a deal with Canada.

The 35% tariffs on non-USMCA goods are going to trigger on August 1st, because the main priority of Trump -looking toward Canada- is to dissolve the USMCA. Continue reading →