Canada-U.S. Trade Minister Dominic LeBlanc sat down with President Donald Trump's trade czar in Washington on Friday as Ottawa continued preparations for a review of the critical continental trade pact.
LeBlanc's office said the meeting with United States Trade Representative Jamieson Greer included discussions of the upcoming mandatory review of the Canada-U.S.-Mexico Agreement on trade, known as CUSMA, as well as other bilateral concerns.
The meeting is being seen as a sign of a thaw in Canada-U.S. relations after Trump froze negotiations with Canada last year because he was angered by an Ontario-sponsored ad quoting former president Ronald Reagan criticizing tariffs.
While no formal negotiations were taking place, LeBlanc and Greer had continued to communicate by phone. Greer told Fox Business last month that Canadians maintain barriers that make it difficult to hold bilateral trade talks.
"They refuse to sell U.S. wine and spirits on their shelves," Greer told Fox Business. "There are a variety of issues they have not addressed and aren't addressing and this makes it a big challenge and an obstacle for starting real negotiations with them."
LeBlanc's meeting with Greer comes at an important time for North American trade talks. The continental trade pact is up for review this year but Trump has cast doubt over CUSMA's future. He has called the trade deal his first administration negotiated "irrelevant" and has said it may have served its purpose.
CUSMA has shielded Canada and Mexico from the worst impacts of Trump's tariffs. His worldwide 10 per cent duty does not apply to goods compliant under the trade agreement.
Canada is still being slammed by Trump's separate tariffs on industries like steel, aluminum, autos, lumber and cabinets.
Prime Minister Mark Carney said Wednesday that CUSMA "effectively has been broken in the short term by U.S. actions." Carney, who was in Australia at the time, said that through the CUSMA review, Canada is looking to "re-establish the trust" individuals, businesses and investors need to guide trade between nations.
While talks with Canada were paused for months, the United States and Mexico continued negotiations.
Greer's office announced Thursday that the Trump administration was officially launching CUSMA review negotiations with Mexico, with meetings scheduled for later this month.
Canada began domestic CUSMA consultations last year but Ottawa has not formally launched talks with the United States.
The CUSMA review sets up a three-way choice for each country to make in July. They can renew the deal for another 16 years, withdraw from it or signal both non-renewal and non-withdrawal — which would trigger an annual review that could keep negotiations going for up to a decade.
Trump's comments suggest it's unlikely the president is looking to rubber-stamp the deal this summer, and lengthy negotiations are expected.
Picture Courtesy: THE CANADIAN PRESS/Justin Tang
