Canada-U.S. Trade Dominic LeBlanc said he expects to see bilateral agreements negotiated alongside talks on the critical continental trade pact.
"I would expect that we will have bilateral arrangements between Canada and the United States, between the United States and Mexico, sort of adjacent to the trilateral framework," LeBlanc said at the U.S.-Canada Summit in Toronto on Thursday.
"If those agreements resolve issues that all three countries are trying to resolve, I'm hopeful that we might, at that point, have the extension."
His comments come after U.S. President Donald Trump said Wednesday he is "not looking to renew" the Canada-U.S.-Mexico-Agreement on trade, known as CUSMA, ahead of a July 1 deadline to rubber-stamp a 16-year extension.
"We don’t need anything that Canada has, we don't need anything that Mexico has, but they need everything that we have," Trump said, pointing to cars, lumber and energy. "And they should have to treat us better."
Canada and Mexico have both called for the 16-year extension. If the Trump administration blows past the July deadline, the trade pact stays in place subject to an annual rolling review for up to 10 years.
While the president could also give six months' notice that the United States is pulling out of the agreement, comments from members of the Trump administration indicate that's not likely to happen immediately.
LeBlanc said he was optimistic after a meeting with United States Trade Representative Jamieson Greer in Washington last week. He said they have remained in contact and will be connecting again on the sidelines of the G7 in France.
LeBlanc said that while Trump's style is to not offer "eternal certainty," Ottawa must "do what we have to ensure that Canadian business and the Canadian economy navigate through that."
U.S. Ambassador to Canada Pete Hoekstra told attendees at the summit earlier Thursday that when Trump says the U.S. doesn't need anything from its northern neighbour, he's actually looking for ways to collaborate.
"When the president says we don't need this from Canada, or there's nothing we need, America has a tremendous amount of things where we have a need," Hoekstra said.
He cited Prime Minister Mark Carney telling the Economic Club of New York last month that a strong Canada makes America great. Ottawa should put on its "sales hat," Hoekstra added, and make the case that it's better for the United States to work with Canada.
Hoekstra said Canadians may not like the way Trump says things but Canada has an opportunity to go into the negotiations "very aggressively and say, 'We know America has needs across the board and we're here to partner with America and fill those needs because we are the best place for America to fill these needs.'"
Pointing to Canadian potash, Hoekstra said there aren't a lot of other places the United States can get the key ingredient for fertilizer. More than 80 per cent of the United States' potash imports come from Canada; the alternative global suppliers are Russia and Belarus.
Hoekstra said it's also more desirable for the United States to get resources like oil from Alberta and automobiles from Ontario.
He said the U.S. can get automobiles from other countries but Ottawa makes a compelling case that "the best place to get that car from is Canada" because of similar labour forces, work and environmental standards, similar pay scales and a long-standing integrated industry.
"Make us an offer," Hoekstra said.
CUSMA was negotiated during the first Trump administration to replace the North American Free Trade Agreement. The president has since called the deal "irrelevant."
The trade agreement has shielded Canada and Mexico from many of Trump's tariffs. The current 10 per cent global tariff does not apply to goods that are compliant under CUSMA.
Canada and Mexico are still being slammed by Trump’s separate tariffs on sectors like steel, aluminum and automobiles.
While official CUSMA trade negotiations between Ottawa and Washington have yet to begin, talks between the United States and Mexico have started.
Picture Courtesy: THE CANADIAN PRESS/Kelly Geraldine Malone
