US flags Canada’s retaliatory tariffs as key obstacle to North America trade deal renewal – Firstpost

The United States identified Canada’s retaliatory tariffs on American goods as a major hurdle in negotiations over the future of the North American trade pact, signalling fresh tensions ahead of a formal review of the agreement next month.

US Trade Representative Jamieson Greer said Canada’s trade measures against US products were complicating efforts to negotiate a renewed version of the US-Mexico-Canada Agreement (USMCA), the trade deal that governs commerce across North America.

Speaking to Fox Business, Greer said senior officials from the Office of the United States Trade Representative (USTR) were already engaged in formal talks with Mexico before a July 1 review process begins.

Under the terms of the USMCA, which replaced the North American Free Trade Agreement (NAFTA) in 2020, the three countries must decide whether to extend the pact for another 16 years. If they fail to agree, the agreement will instead face annual reviews over the next decade before eventually expiring.

While Washington has reported progress in discussions with Mexico, Greer suggested relations with Canada remain more challenging.

“Canada has a different approach to the United States,” Greer said. “They have some retaliatory tariffs still in effect, and that makes it a problem for us to negotiate.” Greer did not specify which Canadian tariffs were creating the biggest concerns for US negotiators.

Canada continues to maintain tariffs on certain American products, including steel, aluminium and automobiles, in response to US duties imposed on Canadian exports. The measures are part of a broader trade dispute that has lingered despite efforts by both sides to improve relations.

The Trump administration has also repeatedly criticised restrictions on the sale of American wine and spirits in several Canadian provinces, where government-controlled liquor retailers dominate distribution.

The issue has become increasingly important for US alcohol producers. According to the Washington-based Distilled Spirits Council, exports of American spirits to Canada fell 63 per cent last year following restrictions introduced by Canadian provinces.

Canadian officials, however, say negotiations remain constructive.

A spokesperson for Dominic LeBlanc, Canada’s minister responsible for US trade, said Canadian representatives were engaged in “meaningful discussions” with counterparts in Washington and Mexico City.

LeBlanc met Greer in Washington last week and presented proposals aimed at addressing concerns raised by the White House, according to the spokesperson.

Canada remains focused on securing outcomes that support economic growth across the region, the spokesperson added.

“Officials will advance Canadian interests while working toward outcomes that support shared prosperity across North America,” the spokesperson said.

The dispute over alcohol sales has emerged as another flashpoint in the broader trade relationship.

Ontario Premier Doug Ford said on Tuesday that American wine and spirits would not return to provincial retail shelves until a broader trade agreement is reached between Ottawa and Washington.

“I can assure you once that deal is done, I’m going to be sitting down and bringing all the booze back on shelves in Ontario, and everyone’s going to be Kumbaya,” Ford said.

With inputs from agencies.