The ongoing evaluation of Canada’s trade agreement with the U.S. and Mexico is garnering attention from various American industries, with many urging the Trump administration to uphold the deal and refrain from imposing tariffs on imports from neighboring countries. Public hearings are set to take place in Washington this week as part of the mandatory review of the Canada-U.S.-Mexico Agreement (CUSMA). Prior to these hearings, prominent players in the U.S. manufacturing, industrial, and retail sectors have submitted documents lauding the agreement’s positive impact on the domestic economy and commending President Donald Trump for securing the trade deal during his initial term.
Although there have been suggestions for modifications among the approximately 1,500 public remarks submitted to the Office of the U.S. Trade Representative, major industry associations widely support the trilateral agreement. The National Association of Manufacturers, the largest group in a sector contributing $2.9 trillion US to the GDP, hails CUSMA as “the most pro-U.S. manufacturing trade agreement in history.” Describing the deal as a catalyst for enhancing U.S. manufacturing to unprecedented levels, the association credits CUSMA as a fundamental factor in bolstering the industry’s global competitiveness.
Industry voices are emphasizing to the Trump administration the pivotal role that Canadian and Mexican supplies play in their operations, underscoring the significance of these markets for their businesses. The National Association of Home Builders, representing 140,000 members in the residential construction industry, highlights the benefits brought about by CUSMA and calls for the removal of all tariffs on building materials imported from Canada and Mexico. The association stresses the importance of Canadian softwood lumber in residential construction and emphasizes the need to reduce building material costs to make housing more affordable for a broader demographic.
Similarly, General Motors underscores the essential nature of the trade deal for the U.S. auto industry’s competitiveness, noting significant investments made in North America since the agreement’s finalization. Ford also regards CUSMA as pivotal for attracting investments, creating jobs, and expanding the domestic manufacturing base in the automotive sector. The American Automotive Policy Council, representing Ford, GM, and Stellantis, recognizes CUSMA as the most crucial trade agreement for its members, enabling substantial annual savings.
In the retail and consumer goods sector, the National Retail Federation acknowledges the effective operation of the trade deal since its inception, benefiting American consumers, suppliers, and competitiveness in North America. The Consumer Brands Association, representing major U.S. producers of various goods, advocates for the renewal of CUSMA, emphasizing the success of the agreement and the importance of continuing the comprehensive, trilateral approach.
The feedback and discussions from this week’s public hearings will contribute to the U.S. government’s readiness for the formal review of CUSMA, slated to commence on July 1, marking six years since the agreement came into effect. Potential outcomes of the review range from extending the agreement to rigorous renegotiations or even a country’s withdrawal from CUSMA. An analysis by the Center for Strategic and International Studies suggests the likelihood of repeated annual reviews if an extension is not unanimously agreed upon, which could undermine investor confidence and long-term investments.