Canada's Carney downplays expectations for T-MEC renewal on July 1 deadline

Canada's Prime Minister Mark Carney has dampened expectations for an immediate renewal of the USMCA trade agreement ahead of the July 1 deadline for the three countries to decide on a 16-year extension. In comments reported by multiple outlets, Carney stated he expects no drama on the deadline day, saying, 'I'm not looking for my pen' Source: Infobae.

Positions and tensions

• Canada has formally expressed support for the 16-year extension, with spokesperson Jean-Sébastien Comeau highlighting a 32% increase in trilateral trade since the agreement took effect Source: Milenio.
• The US position remains unclear, though Ambassador Pete Hoekstra indicated the two countries are 'close to announcing some kind of framework or interim agreement' Source: La Republica.
• Mexico, represented by Economy Secretary Marcelo Ebrard, plans to present its position in favor of extension during a virtual meeting on July 1 Source: La Republica.

Key sticking points include US sectoral tariffs on Canadian steel, aluminum, and autos, which remain in place despite the agreement. Carney has insisted Canada will not accept a bad deal and seeks modernisation Source: Infobae. Meanwhile, US senators are pressing Trade Representative Jamieson Greer to address imports of Mexican specialty crops Source: La Republica.

If any party declines renewal, the agreement will not expire immediately but will enter annual reviews until 2036 Source: Infobae.