Canada and Mexico have formally called on the United States to renew the USMCA — the United States-Mexico-Canada Agreement, the trilateral free trade pact that has bound the three North American economies together since the early 1990s — for another 16 years. Canada's minister for US trade, Dominic LeBlanc, sent a letter to US Trade Representative Jamieson Greer on Tuesday formally requesting the extension, describing the agreement as "highly beneficial" to all three countries and to the integrated North American economy. Mexico's Economy Minister Marcelo Ebrard separately confirmed his country's position, saying: "Mexico's intention and position is that the treaty should be extended to 16 years."

The push comes with a critical deadline looming: if the three countries do not agree to extend the USMCA by 1 July, the pact would revert to annual reviews until 2036, creating significant uncertainty for businesses across the continent. LeBlanc and Canada's chief trade negotiator, Janice Charette, travelled to Washington on Tuesday to meet Greer in person. In his letter, LeBlanc acknowledged that improvements to the pact are possible, stating that Canada is "willing to consider any proposal that can be beneficial to all three nations' long-term prosperity," while also insisting that talks on reducing sector-specific tariffs on Canadian steel, aluminium, automobiles and lumber must run in parallel. Greer has indicated Canada may have to accept some form of ongoing US levies, and has cited Canadian retaliatory tariffs as a reason the Canada-US negotiations have moved more slowly than those with Mexico.

The broader talks are complicated by a string of US demands and bilateral tensions. Washington has pressed for greater access to Canada's tightly protected dairy market, an increase in US-made content requirements for North American-manufactured vehicles, and the removal of a Canadian provincial ban on American alcohol that was introduced in response to US tariffs. On the Mexican side, the US has asked that cars built in North America contain at least 50% American-made content. Canadian Prime Minister Mark Carney noted that vehicles produced in Canada already average roughly that share of US content, and argued that a stronger Canadian economy would ultimately benefit the United States as well.

The negotiations are unfolding against a charged political backdrop. President Donald Trump revived his "51st state" rhetoric toward Canada on Monday, sharing a social media post linking to reports of Canada's slowing economy — a move that drew swift pushback from Canadian officials and drew sharp criticism from US Democratic voices, including Illinois Governor JB Pritzker. Carney acknowledged "some weakness" in the Canadian economy but stopped short of confirming a recession, saying his government is focused on building "a stronger, more resilient, and more independent" economy. Opposition Conservative MPs at home have pressed him to show results from the negotiations, with one MP calling Carney a "grand illusionist" who has failed to deliver economic growth.

Why this matters: the USMCA underpins one of the world's largest trading relationships, covering hundreds of billions of dollars in annual cross-border commerce. Its provisions have shielded many Canadian and Mexican goods from the broader wave of US protectionist tariffs under the Trump administration. A failure to secure a 16-year renewal before July would not end the agreement, but the resulting annual-review mechanism would inject prolonged uncertainty into supply chains, investment decisions and industries — from auto manufacturing to agriculture — that span all three countries.