Canada formally requests renewal of North American free trade pact

Canada has formally requested a renewal of the North American free trade agreement with the US and Mexico, called the USMCA, as the July deadline to renegotiate the pact looms.

In Tuesday's notice of renewal, Canada-US trade minister Dominic LeBlanc requested that the deal be renewed for another 16 years, calling the agreement "highly beneficial" to all three countries.

It comes as LeBlanc is in Washington for a meeting with US trade representative Jamieson Greer.

Greer has concluded the latest round of formal bilateral talks with Mexico, but negotiations with Canada have lagged behind, with the two sides appearing at odds over sector-specific tariffs and automobile manufacturing.

Prime Minister Mark Carney has said publicly that he wants sector-specific tariffs imposed on Canadian steel, aluminium, automobiles and lumber removed or lowered, while Greer has indicated that Canada may have to accept some form of US tariffs.

The US, meanwhile, has cited multiple trade irritants with Canada, including the decision by most Canadian provinces to remove American liquor from shelves due to tariffs imposed by President Donald Trump.

It also wants greater access to Canadian markets for American businesses, specifically dairy, where Canada has strict control over production quotas and imports to support local farmers.

Last week, Greer said that he will also be discussing increasing the percentage of US content in North American-made cars, as well as co-ordinating external tariffs on other countries with Canada and Mexico.