A pivotal hearing in Washington regarding the fate of Canada’s trilateral trade deal with the U.S. and Mexico commenced on Wednesday, with U.S. agricultural, business, and policy organizations urging the Trump administration not to terminate the agreement. The hearing, conducted by the Office of the U.S. Trade Representative (USTR), serves as the focal point for the government’s public engagement on whether to extend the Canada-U.S.-Mexico Agreement (CUSMA) in 2026, renegotiate it, or withdraw altogether.
Numerous speakers advocated for the extension of the agreement during the hearing, highlighting how its provisions for free trade have enabled their industries to increase revenues by accessing both the Canadian and Mexican markets. Concerns were raised about the potential jeopardy to this beneficial access due to President Trump’s tariff-driven trade disputes.
Dave Walton, the secretary of the American Soybean Association, criticized Trump’s imposition of tariffs on Canadian and Mexican exports, including those on specific industrial goods like steel, aluminum, and automotive parts. Walton expressed worries that these tariffs could lead to retaliatory actions against U.S. soybean farmers, emphasizing the detrimental impact a failure to renew the trade deal, known as USMCA in the U.S., would have on the industry.
Riley Bushue, vice-president of the Northwest Horticultural Council, representing major U.S. apple, pear, and cherry growers, valued at $13 billion, highlighted how retaliatory tariffs from Mexico during Trump’s initial trade conflicts harmed their industry’s exports. He stressed the potential devastation if preferential access to Mexico and Canada was lost.
The hearing, featuring nearly 150 witnesses scheduled to testify over three days, encompassed various industries, with a predominant focus on U.S. agricultural producers, clothing, pharmaceutical sectors, and trade policy experts. Stakeholders across sectors, including almond producers, berry producers, and corn growers, urged the Trump administration to retain the trade agreement.
Raquel Espinoza, chairwoman of the Fresh Produce Association of the Americas based in Arizona, emphasized the importance of maintaining tariff-free trade with Canada and Mexico, denouncing protectionist measures that could negatively impact American consumers and agricultural exports. Alicia Rockwell, the chief government affairs officer for Blue Diamond, a major almond producer in California, stressed the critical role of Canada and Mexico as markets for the industry, labeling CUSMA as vital for the survival of numerous family farms.
While many sectors supported extending the trade deal, some raised concerns about its implementation, particularly focusing on Mexico. Issues such as inadequate inspections of imported avocados, government subsidies undercutting U.S. fruit and vegetable growers, and monitoring of labor standards in Mexico were highlighted during the hearing.
Criticism was also directed at Canada’s agricultural trade practices, particularly regarding dairy sector protection. Concerns were raised about Canada’s compliance with dairy trade commitments, with calls for the enforcement of standards. Additionally, officials representing U.S. beef producers advocated for mandatory country of origin labeling, while the U.S. distilled spirits sector pushed for geographic designations to be included in the trade deal for products like American bourbon, Canadian rye, and Mexican tequila and mescal.