Carney Dismisses US Exit Rumors from CUSMA: ‘They’re Not Indicating That’

Prime Minister Mark Carney pushed back Thursday on the suggestion the U.S. is considering pulling out of North America’s free-trade pact.

When The Canadian Press asked the prime minister if he was open to separate bilateral trade pacts if the U.S. withdraws, Carney replied, “That’s not what they’re saying.”

U.S. Trade Representative Jamieson Greer floated the idea during a public talk put on by the American think-tank the Atlantic Council in Washington on Wednesday. Greer said the continental free-trade pact could be dissolved, revised or renegotiated.

“Could it be exited? Yeah, it could be exited. Could it be revised? Yes. Could it be renegotiated? Yes,” he said. “All of those things are on the table.”

Canada’s most important free trade deal, the Canada-United States-Mexico Agreement often referred to as CUSMA is set to come up for review next year.

Dominic LeBlanc, the minister responsible for Canada-U.S. relations, told The Canadian Press Ottawa’s conversations with American officials indicate they are not interested in tearing up the deal.

“We believe, based on our conversations with the Americans, that for the moment that’s not the objective the Americans have in mind,” he said in a French-language interview.

But Canada’s former chief trade negotiator Steve Verheul has warned members of Parliament the U.S. will likely seek to crank up the pressure on Canada and Mexico during the review by threatening to end the agreement.

“The biggest challenge Canada and Mexico will face is to convince the U.S. of the reality that extending the agreement is the most effective way to promote economic growth and prosperity in all three countries,” Verheul told a House of Commons committee on Oct. 30.

“To put further pressure on Canada and Mexico, the U.S. is unlikely to take a position that supports an extension of the agreement at this time. They’re going to try to use that as leverage.”

At the Dec. 4 Grow Canada Conference in Calgary, Verheul said Canada may see Trump and his team continue to push next year for the sort of informal deals they’ve reached with the EU, Japan and South Korea as the review is being conducted.