Canada expects side deals with U.S. in North American trade review

Canada is preparing for North American trade talks to become less of a single three-way bargain and more of a layered set of deals around it. Dominic LeBlanc said Ottawa expects bilateral arrangements between Canada and the United States, and between the United States and Mexico, to sit alongside the USMCA framework if they help settle disputed issues.

LeBlanc, Canada’s minister responsible for Canada-U.S. trade, made the remarks in Toronto and said he expected to meet U.S. Trade Representative Jamieson Greer next week in France on the sidelines of the G7 leaders’ meeting. His comments pointed to a negotiating process that could give Washington, Ottawa and Mexico City more room to handle sensitive subjects separately, rather than forcing every issue into one continent-wide package.

The timing matters because the first joint review of USMCA is scheduled for July 1, 2026, under Article 34.7. If Canada, the United States and Mexico agree to extend the pact, it can be renewed for 16 more years, through 2042. If they do not, annual reviews begin and the agreement could eventually expire in 2036.

Bilateral talks are already underway. Greer and Mexico’s economy minister, Marcelo Ebrard, launched bilateral review discussions on March 5, 2026, before the trilateral review window opened. Canada has also formally asked both partners to renew USMCA for 16 years, underscoring Ottawa’s preference for stability even as it seeks more flexibility in how the talks are structured.

That push comes after reports that Canada was left out of some earlier U.S.-Mexico bilateral discussions, a sign that Ottawa wants a more active role as the review takes shape. For Canadian officials, bilateral channels may offer a way to protect core interests in politically sensitive sectors, including autos, dairy and energy, while preserving the broader trilateral pact that governs more than a trillion dollars in annual North American trade.

Business groups are already warning that the process could unsettle companies that depend on predictable cross-border rules. The Canadian Chamber of Commerce said business use of USMCA reached a 20-year high last year, a reminder that firms have leaned heavily on the agreement even as governments prepare to reopen it.

Washington has also moved the review into formal domestic process. The Office of the United States Trade Representative opened a public consultation ahead of the July 1 review and set a public hearing for November 17, 2025. Taken together, the consultations, the bilateral talks and LeBlanc’s comments suggest USMCA may emerge less as a fixed trilateral pact than as a framework surrounded by country-by-country side deals.