World March 12, 2026

U.S. Seeks Renewal of North American Trade Pact as Talks Stall, Ambassador Says

Pete Hoekstra warns of negotiation 'headwinds' with Canada ahead of July 1 review, highlights tariffs, energy ties and critical minerals

By Maya Rios
U.S. Seeks Renewal of North American Trade Pact as Talks Stall, Ambassador Says

U.S. Ambassador to Canada Pete Hoekstra said Washington wants to renew the U.S.-Mexico-Canada trade pact but is encountering resistance from Canada, with no substantive bilateral talks since October and a mandatory review due July 1. Speaking in Toronto, Hoekstra outlined U.S. priorities including tariff access, eliminating non-tariff barriers, deeper energy cooperation and critical minerals supply-chain development.

Key Points

  • U.S. wants to renew the USMCA (CUSMA in Canada) but faces resistance from Canada with no substantive talks since October - impacts trade policy and negotiations.
  • U.S. priorities include securing lowest tariff access, removing non-tariff barriers, strengthening energy cooperation, and building critical-minerals supply chains - relevant to energy and mining sectors.
  • A mandatory review is due July 1, creating a firm timeline for negotiations and potential pressure on bilateral trade talks.

U.S. Ambassador to Canada Pete Hoekstra said the United States remains intent on renewing the U.S.-Mexico-Canada Agreement (USMCA) but is meeting resistance from Canada as negotiators approach a mandatory review on July 1.

Speaking at the Canadian Crops Convention in Toronto, Hoekstra said the U.S. believes the USMCA - known in Canada as CUSMA - has performed well, but he complained there have been no "substantive" talks with Canada since October. He added that while the two sides want to reach an accord, they are encountering difficulties.

Hoekstra said: "I think we want to get to an agreement, but we are facing some headwinds in the negotiations," and noted that the Canadian minister responsible for Canada-U.S. trade met with his counterpart, U.S. Trade Representative Jamieson Greer, last week.

A representative for the Canadian minister responsible for U.S. trade did not immediately respond to a request for comment.


U.S. priorities outlined by Hoekstra

  • Canada should do everything it can to get into the lowest tariff buckets.
  • The U.S. is looking for coalitions with countries that will make sure that if there are trade agreements, then the non-tariff trade barriers are removed.
  • U.S. President Donald Trump has said there will be some tariff for getting access to the U.S. market so the Canadian government and businesses should make the case why it is beneficial for the U.S. to do business with Canada at the lowest tariff rate.
  • Canada and the U.S. can also work more closely on energy. The U.S. already imports a lot of oil and natural gas from Canada, the U.S. processes much of this energy, and it would want to expand the partnership.
  • Canada should also build a stockpile of critical minerals in Canada or the U.S. to use during emergencies. Canada has many critical minerals and it should develop a full supply chain to become an ideal partner for the U.S.

Hoekstra emphasized a mix of tariff and non-tariff issues as central to upcoming talks, and he highlighted energy ties and critical minerals as areas where expanded cooperation would benefit both countries. He framed these priorities as part of Washington's broader approach to ensuring market access and supply-chain resilience.

There was no additional detail provided on timelines, specific negotiating positions beyond the points Hoekstra listed, or outcomes expected from the recent meeting between the Canadian trade minister and U.S. Trade Representative Jamieson Greer. The comments left open how the parties will address the cited "headwinds" before the statutory July 1 review.

Also included in the public record around the event was promotional material about investment research products, describing how institutional-grade data and AI-powered tools can support investment decisions for 2026, though no link was drawn between that material and the bilateral trade discussions Hoekstra described.

Risks

  • Negotiation 'headwinds' and a lack of substantive talks since October create uncertainty for cross-border trade and industries that rely on tariff certainty, notably agriculture and manufacturing.
  • Potential tariffs or continued tariff negotiations could affect market access and cost structures for exporters and importers between Canada and the U.S., impacting trade-exposed sectors.
  • Delays or stalled agreement could slow efforts to expand energy cooperation and develop integrated critical-minerals supply chains, affecting energy and mining investment plans.

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