U.S. Trade Representative, Jamieson Greer, outlined a set of requirements on Wednesday that Canada must fulfill to extend the Canada-U.S.-Mexico agreement (CUSMA) during the upcoming review next year. This is the first time the administration has made public the expectations for Prime Minister Mark Carney to secure the pact for the long term.
Greer stated to Congress that while CUSMA has shown some success, certain modifications are necessary before President Trump agrees to extend it for another 16 years or return to yearly evaluations, which Canada aims to avoid due to the ensuing uncertainty each year. He mentioned that despite the increase in American exports to Canada and Mexico by 56% since 2020, the agreement cannot be considered a complete success.
The U.S. will focus on two main Canadian policies, particularly the Online Streaming Act and the supply-managed dairy sector. Greer emphasized that Canada needs to enhance “market access for U.S. dairy products” and address issues related to “Canada’s exports of certain dairy products.” Although he did not call for the complete dismantling of supply management, Greer stressed that Canada’s policies must be revised to eliminate any unfair restrictions on market access.
Additionally, Greer highlighted concerns regarding the discriminatory provincial bans on U.S. alcohol beverages in Canada, initiated in response to Trump’s tariffs on key sectors. Notably, the boycotts have significantly impacted U.S. spirits company Brown-Forman, leading to a substantial decline in Canadian sales. This issue has drawn attention at the highest levels of American officials, including U.S. Ambassador to Canada, Pete Hoekstra.
Furthermore, Greer’s demands extend to addressing various trade and regulatory issues in different Canadian provinces, including discriminatory procurement measures, customs registration complexities for Canadian companies receiving U.S. exports, and unfair treatment of electrical power distribution providers in Montana by Alberta. Although not explicitly mentioned as a condition for renewal, Greer pointed out regulatory imbalances concerning Canadian fishers in the “grey zone” near New Brunswick and Maine.
In a positive development, Greer acknowledged the widespread support from North American business and labor groups for continuing the agreement in some form. Stakeholders have called for an extension while also advocating for improvements to the existing agreement. Greer hinted at the possibility of separate bilateral agreements with Canada and Mexico instead of a comprehensive trilateral pact, although he emphasized the importance of addressing certain continental-wide issues collaboratively with all three partners.
Overall, the Trump administration’s stance on CUSMA renegotiations underscores the need for Canada to address specific concerns to secure the agreement’s future.