Commodities April 22, 2026 10:24 AM

Canada Says It Will Not Permit U.S. to Set Terms for USMCA Review

Prime Minister stresses negotiation and mutual agreement as Mexico moves ahead with talks and review deadline looms

By Leila Farooq
Canada Says It Will Not Permit U.S. to Set Terms for USMCA Review

Canada's prime minister said Ottawa will resist any attempt by the United States to unilaterally impose terms for the scheduled review of the United States-Mexico-Canada Agreement. Mexico has already engaged Washington in two rounds and plans a first formal negotiation next month, while Canada has not set a date for talks. The USMCA review must be completed by July 1.

Key Points

  • Canada will not accept U.S. unilateral demands for the USMCA review and insists on negotiated terms - impacts broader trade and diplomatic relations.
  • Mexico has engaged Washington in two rounds of talks and will begin its first formal negotiation next month; Canada has not yet scheduled talks - affects timing of trilateral review.
  • The review must be finished by July 1, and Canada's chief trade negotiator expects unresolved issues may remain after that date without causing the agreement to collapse - relevant to trade policy and market expectations.

OTTAWA, April 22 - Canada will not allow the United States to simply impose conditions for the upcoming review of the United States-Mexico-Canada Agreement, Prime Minister Mark Carney said on Wednesday. He stressed that any adjustments will be reached through negotiation rather than unilateral demands.

Mexico has already held two rounds of discussions with the United States about the review and is scheduled to begin its first formal round of negotiations next month. By contrast, no timing has been announced for Canada's formal talks with Washington. The review process is due to conclude by July 1.

Former Quebec premier Jean Charest, who serves on an advisory panel to the prime minister on Canada-U.S. economic relations, told Radio-Canada that Washington was seeking "a lot of concessions from Canada" ahead of talks. Carney pushed back on the notion that the United States would dictate outcomes. "It’s not a case that the United States dictates the terms. We have a negotiation, we can come to a mutually successful outcome - it will take some time," he said to reporters.

The prime minister noted that last year the United States imposed tariffs on key Canadian imports and that Canada responded with countermeasures. Carney said those measures underscore the need for Canada to broaden its trade relationships and reduce its heavy dependence on the United States for commerce.

Janice Charette, Canada’s chief trade negotiator with the United States, indicated on Tuesday that she did not expect all issues between the two countries to be resolved by the July 1 deadline. She added that incomplete resolution by that date would not necessarily lead to the collapse of the North American trade agreement.


Context and next steps

  • Mexico has already conducted two rounds of talks with the United States and will hold a first formal negotiation next month.
  • No date has been announced for negotiations that would include Canada.
  • The formal review of the USMCA is scheduled to be completed by July 1.

Risks

  • Potential negotiation deadlock if parties cannot reach agreement by July 1 - could affect cross-border trade flows and business planning.
  • U.S. demands for concessions cited by advisory panel members may strain talks and increase uncertainty for exporters - relevant to exporters and sectors reliant on North American supply chains.
  • Past U.S. tariffs and Canadian countermeasures indicate a risk of recurring trade tensions, reinforcing the need for Canada to diversify trade - implications for trade-dependent industries and market sentiment.

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