U.S. President Donald Trump’s trade representative outlined specific requirements on Wednesday that Canada must fulfill to extend the Canada-U.S.-Mexico agreement (CUSMA) during the upcoming review in the following year. This marks the first public disclosure of the Trump administration’s expectations for Prime Minister Mark Carney in order to secure the agreement for an additional 16 years or potentially revert to annual evaluations, a situation Canada wishes to avoid due to the resulting yearly uncertainty.
During a session with Congress, U.S. Trade Representative Jamieson Greer expressed that while CUSMA has shown some success, certain modifications are essential before Trump would consider its extension. Although acknowledging the boost in American exports to Canada and Mexico by 56% since 2020, Greer stated that the agreement’s deficiencies prevent a simple endorsement.
Greer emphasized that the administration will maintain flexibility, negotiating firmly to address the identified issues, and only endorsing renewal if satisfactory resolutions are achieved. This stance contrasts with Trump’s previous appraisal of the trilateral trade deal as “the best agreement we’ve ever made.”
One of Greer’s key points focused on rectifying two significant Canadian policies: the Online Streaming Act and the supply-managed dairy sector. To ensure a successful CUSMA review, Canada must enhance “market access for U.S. dairy products” and tackle issues regarding “Canada’s exports of certain dairy products,” particularly addressing concerns of alleged dumping of milk ingredients at lower costs than U.S. producers.
Although not advocating for the complete dismantling of supply management, Greer urged that Canada’s policies restricting market access be addressed. Additionally, he highlighted the need for revisions to the Trudeau-era streaming legislation, suggesting it discriminates against U.S. tech and media companies.
Another area of contention mentioned by Greer is the provincial bans on distributing U.S. alcohol beverages in Canada, a response to Trump’s tariff measures in key sectors. Notably, these bans have significantly impacted sales, with Brown-Forman, the producer of Jack Daniel’s, experiencing a substantial decline in Canadian sales.
Furthermore, Greer underscored the importance of addressing discriminatory procurement measures, complicated customs registration for Canadian companies receiving U.S. exports, and unfair treatment of electrical power distribution providers in Montana by Alberta. Additionally, he referenced regulatory imbalances with Canadian fishers in the “grey zone” near New Brunswick and Maine, an unresolved issue between Canada and the U.S.
Despite the challenges, Greer acknowledged the widespread support for continuing the agreement in some form from North American business and labor groups. While leaving room for the possibility of separate deals with Canada and Mexico, he emphasized that certain continental-wide issues are best resolved collaboratively with all three partners.