The head of Canada’s largest bank has expressed confidence that the United States-Mexico-Canada Agreement (USMCA) will remain intact, arguing that the landmark trade deal is too important for all three North American nations to abandon.
Speaking at a Bloomberg-hosted event in Toronto, Royal Bank of Canada CEO Dave McKay said there has been no indication that any member country intends to permanently withdraw from the agreement, despite recent comments from U.S. President Donald Trump suggesting he is not seeking to renew the pact.
Trump, who signed the USMCA during his first term and previously praised the agreement, said last week that he was not “looking to renew” the trade deal. If the agreement is not renewed by July 1, it will continue to remain in force but become subject to annual reviews unless one of the participating countries formally withdraws.
McKay emphasized that there is a significant difference between reviewing the agreement and ending it altogether.
“There’s been no mention of cancelling the agreement,” he told reporters. “Cancellation means you’re giving notice of a permanent withdrawal. This agreement is too important to the United States and to Canada and to Mexico, I believe, to cancel.”
The comments come amid growing discussions about Canada’s economic dependence on the United States. Prime Minister Mark Carney has repeatedly argued that Canada should reduce its reliance on its southern neighbor and diversify its international trade relationships.
McKay agreed that diversification is essential, noting that approximately 80 percent of Canada’s trade is conducted with the United States. He compared the situation to a business relying heavily on a single customer, suggesting that expanding into additional markets would help reduce economic risk.
However, he stressed that strengthening trade ties with other countries should complement, rather than replace, Canada’s economic relationship with the United States.
“Canada has 80 percent of its trade with the United States,” McKay said, adding that diversification should be pursued to “de-risk” the economy while preserving existing trade partnerships.
The banking executive highlighted the enormous value of cross-border commerce, noting that Canada and the United States currently share an economic relationship worth approximately CAN$1.3 trillion (US$930 billion).
As uncertainty continues over the future review process of the USMCA, business leaders and policymakers across North America are closely watching developments, with many viewing the trade agreement as a cornerstone of regional economic stability and growth.
