Canada’s ambassador to the United States is playing down indications from the Trump administration about potentially splitting the North American free trade agreement into individual agreements with Mexico and Canada. Kirsten Hillman, who is also Canada’s chief negotiator in trade discussions with the U.S., stated on Thursday that the fundamental regulations of the Canada-U.S.-Mexico Agreement (CUSMA) are applicable to all three nations. She emphasized the trilateral foundation of the agreement and highlighted that no signals have been received from the U.S. side regarding altering this foundation.
This statement by Hillman follows comments by U.S. Trade Representative Jamieson Greer suggesting the possibility of separate trade deals with Canada and Mexico to replace CUSMA, especially as the agreement approaches a critical review deadline next year. Greer pointed out the distinct economic relationships the U.S. has with Canada and Mexico, emphasizing differences in labor conditions, import-export dynamics, and legal frameworks as reasons to consider separate negotiations.
Greer revealed that he had not engaged in joint trade discussions with Canada and Mexico throughout the year but had held individual talks with representatives from each country. Conversely, Hillman noted that bilateral discussions are common and expressed her belief that CUSMA, or an evolved iteration of it, will endure.
Hillman reassured that there is no cause for alarm, stressing the importance of a stable and open trade relationship among the three countries for mutual prosperity. All three nations are required to declare by July 1 of the following year whether they intend to extend, renegotiate, or terminate the agreement. According to U.S. regulations, Greer must submit a report to Congress by January 2 outlining the administration’s plans for the trade deal, with any country able to withdraw from CUSMA by providing a six-month notice.
In a recent interview, Dominic LeBlanc, the minister overseeing Canada-U.S. trade, echoed the sentiment that there are no signs of the Trump administration moving to dismantle CUSMA. Hillman’s remarks were made ahead of a meeting with the House Ways and Means Committee on Capitol Hill, during which she planned to discuss Canada’s objectives for the CUSMA review and present data on job creation resulting from trade with Canada to U.S. lawmakers.
The Canada-U.S. trade relationship has faced challenges due to tariffs imposed by President Trump, with CUSMA providing essential protection for most Canadian exports. Despite this, certain Canadian exports, such as steel, aluminum, automotive products, and kitchen cabinets, continue to be subjected to tariffs by the U.S. Talks to reduce steel and aluminum tariffs were halted in October following an anti-tariff campaign by the Ontario government, with no resumption of discussions scheduled as of Thursday.
Hillman recently announced her impending resignation as ambassador in the coming year, having held the position since 2020. Prime Minister Mark Carney has yet to reveal her successor.