By Paul Vieira


OTTAWA--Canada has formally asked the U.S. and Mexico that the present North American trade treaty be renewed for another 16 years, adding though that talks on tariff relief from Washington on specific manufacturing sectors would be essential.

The formal request was in a letter, dated June 1, to U.S. Trade Representative Jamieson Greer and Mexico's economy minister Marcelo Ebrard from the Canadian minister in charge of U.S. trade, Dominic LeBlanc. LeBlanc and Canada's chief trade negotiator, Janice Charette, are scheduled to be in Washington Tuesday for a meeting with Greer.

Canada is keen to keep intact the trade pact, known as USMCA, because the treaty allows for the bulk of U.S.-bound Canadian exports to be exempt from U.S. tariffs. Canadian officials have said there is little appetite on Ottawa's part for a major rewrite of the deal. Further, LeBlanc has said the U.S. must provide relief of hefty sector tariffs targeting automobiles, steel and aluminum, and that Canadian officials won't heed to a never-ending list of U.S. demands just so talks on USMCA's renewal can carry on.

The U.S. and Mexico started formal renewal talks last month, while Greer has repeatedly said that dealing with Canada has proven challenging.

The three governments must decide by July 1 whether to extend the trade pact for another 16 years. If there's no commitment on renewal, USMCA would then be subject to a series of annual reviews until 2036 -- at which time the treaty would expire barring a triparty agreement.

In the letter, LeBlanc said that the U.S. and Mexico may want to propose improvements to the deal, and Canada is willing to consider measures that benefit all three countries. "In parallel, discussions with the U.S. on addressing sectoral tariffs will be essential."

LeBlanc added that businesses, farmers and households in North America seek reassurances that the deal will largely remain intact. In Canada, the policy uncertainty emanating from the Trump administration's trade policy has cast a pall on the business investment environment, with firms either canceling or delaying spending and hiring plans. Canada's economy has contracted in three of the last four quarters.


Write to Paul Vieira at paul.vieira@wsj.com


(END) Dow Jones Newswires

06-02-26 1047ET