Mexico’s Minister of Economy Marcelo Ebrard called on Canada to join USMCA review negotiations after the first formal Mexico-US bilateral round concluded May 29 in Mexico City, with a second round scheduled for June 16 in Washington, as the July 1, 2026 deadline approaches. Canada’s absence from the process creates trilateral uncertainty affecting automotive, steel, aluminum, and supply chain-dependent sectors across North America, while Mexico positions itself as Washington’s preferred negotiating partner by addressing 52 US trade demands and aligning tariff policy on Chinese imports ahead of a review that determines whether USMCA continues for 16 years or enters a decade-long annual review cycle.<\/p>\n
Minister of Economy Marcelo Ebrard called on Canada to join formal USMCA review negotiations, saying both countries share an interest in preserving tariff-free access to the US market, even as Canada has remained largely absent from the bilateral talks that Mexico and the United States opened on May 27 in Mexico City.<\/p>\n
“We would very much like, of course, for Canada to join the conversations as soon as possible, we have made that known. And well, it depends on the talks between them, Canada and the United States, to see how this is going to be resolved,”\u00a0Ebrard said at a press conference.<\/a><\/p>\n Where the Negotiations Stand<\/p>\n Mexico and the United States launched the\u00a0first formal bilateral negotiating round<\/a> related to the Joint Review of USMCA on May 27, with sessions running through May 29 at Mexico’s Ministry of Economy in Mexico City.\u00a0<\/p>\n The US side was headed by Deputy US Trade Representative Jeff Goettman, accompanied by a bipartisan group of members of Congress from the House Ways and Means Committee and 60 business representatives from various sectors. “We are moving forward on a common path with the United States,” Ebrard wrote on his X account. The first round covered economic security and rules of origin for key industrial products.<\/p>\n Ebrard confirmed that the next negotiating round will take place June 16 in Washington, at which point Mexico will present its own proposals and positions to the United States. He declined to comment on reported US demands regarding automotive rules of origin, stating that Mexico would seek the best possible tariff treatment among nearly 190 US trading partners.<\/p>\n “The previous system was duty free. You pay no tariff. That system no longer works. Look at all the decisions the Trump Administration has taken. All of them go against that. The only country that has 85% of exports today without tariffs is us and Canada. Everyone else is paying something,” Ebrard said. He added: “What do we want? No tariffs. But they say, ‘No, well, we want tariffs, tariffs, tariffs.'”<\/p>\n The\u00a0US government has signaled that USMCA review negotiations will extend beyond the July 1,<\/a> 2026 deadline. Mexico has taken concrete steps to align with US priorities, including placing tariffs on 1,400 products targeting Chinese imports and working through 52 US trade demands, while the US has received 12 demands from Mexico in return.<\/p>\n Under Art. 34.7 of the USMCA, a scheduled evaluation is set for July 1, 2026. If all parties confirm intent to continue, the agreement remains in force for an additional 16 years. If one party does not confirm, the parties must conduct joint annual reviews for 10 years, after which the agreement expires.<\/p>\n Canada’s Position<\/p>\n Canada has not participated in the USMCA review negotiations<\/a> despite indications of a possible trilateral meeting since mid-January. Prime Minister Mark Carney has publicly criticized the disruption to the global order caused by US protectionism and tariffs, warning that Canada’s deep integration with the United States has shifted from an asset to a vulnerability, and calling for diversification of Canada’s trade relationships.<\/p>\n According to Statistics Canada data for 2025, Canada exported 73% of its goods to the United States and imported 46% of its products from the US market.<\/p>\n Canada’s response to US tariffs under the International Emergency Economic Powers Act (IEEPA) included retaliatory tariffs of 25% on US imports valued at CA$30 billion (US$21.8 billion). In response to US sectoral tariffs, Canada imposed an additional 25% on US imports worth CA$29.8 billion, including US vehicles that do not comply with USMCA, as well as non-Canadian and non-Mexican content of vehicles traded under the agreement. Canada also challenged US Section 232 tariffs before the World Trade Organization. By September 2025, Canada had removed retaliatory tariffs tied to IEEPA and some steel and aluminum measures, though tariffs on US vehicles and steel and aluminum imports worth CA$15.6 billion remain in place.<\/p>\n Earlier this year, Ebrard and Canada’s Minister of Intergovernmental Affairs Dominic LeBlanc announced a joint action plan incorporating elements of the USMCA review, to be presented to their respective leaders in the first half of 2026, with the aim of strengthening cooperation in strategic sectors. LeBlanc said: “As our two countries seek to further diversify their trade, there is no better time than now to forge new partnerships, following in the footsteps of companies such as McCain Foods, Grupo Bimbo, and Bombardier Recreational Products.”<\/p>\n