PM Carney says Canada to work with U.S., Mexico to ‘modernize’ free trade deal

Prime Minister Mark Carney says Canada will work with the United States and Mexico to “modernize” the trilateral trade deal known as CUSMA.

This phrasing – which comes less than a week before the July 1 deadline for all three countries to declare if they want to renew or review the North American pact – suggests changes to the current agreement or other related adjustments could be coming to satisfy U.S. President Donald Trump’s reservations about the current deal.

Carney said the continental cooperation will “provide greater certainty for workers and businesses and to create lasting prosperity across the continent,” amid prolonged economic instability and the exchange of tariffs.

“Despite challenges, Canada maintains the best deal of any major U.S. trading partner, with 85 per cent of our trade remaining tariff-free,” Carney said.

The prime minister made these comments as part of a press conference on Parliament Hill Thursday morning, on the heels of a call with Trump on Wednesday.

“The president called me yesterday. We had a long discussion with him, and at times some of his senior officials, Secretary Hegseth and his commander in chief, on a range of issues,” Carney said.

“Some related to NATO, some related to the situation in Iran and the broader Middle East, both, so both current and structural issues, very constructive conversations, things we’re working on together. I think those are best left till they come to come to fruition.”

His office billed the event as an opportunity for the prime minister to “outline the results delivered by Canada’s new government.”

On that front, Carney also emphasized that 19 government bills received royal assent in the spring sitting, and two other key pieces were passed by the House of Commons that will be dealt with by the Senate this fall.

As for work beyond Parliament, he noted:

• 4,500 new affordable homes are either under construction or due to break ground within the next three months;
• 23 projects of national significance have been advanced since last summer;
• 20 new economic and security partnerships have been secured across five continents;
• international student arrivals are down 60 per cent, asylum claims are down by one third; and
• he met with premiers 12 times over the last year.

“We have the right plan and we’re on track, but there’s much more to do, and we have always recognised that some of the biggest payoffs from that plan will take time,” Carney said.

This is a developing story, check back for updates…