Canada’s ambassador to the United States, Kirsten Hillman, has played down indications from the Trump administration suggesting a potential breakup of the North American free trade agreement into separate deals with Mexico and Canada. Hillman, who also leads Canada’s trade negotiations with the U.S., emphasized that the fundamental principles of the Canada-U.S.-Mexico Agreement (CUSMA) are designed to encompass all three nations.
In response to recent remarks by U.S. Trade Representative Jamieson Greer proposing the idea of individual trade agreements with Canada and Mexico, Hillman noted the distinct economic relationships each country has with the U.S., citing differences in labor conditions, import-export profiles, and legal frameworks. Nonetheless, Hillman expressed confidence that CUSMA, or an evolved iteration thereof, will endure, highlighting the importance of a stable and mutually beneficial trade partnership among the three nations.
As the agreement faces a critical review deadline next year, all three countries must declare their intentions by July 1 regarding the extension, renegotiation, or expiration of CUSMA. Under U.S. law, Greer is mandated to submit a report to Congress by January 2 outlining the administration’s strategies for the trade deal. Despite the prospect of any country withdrawing from CUSMA with a six-month notice, Hillman and Canadian Minister of Canada-U.S. Trade, Dominic LeBlanc, have expressed optimism that the agreement will persist.
Hillman, prior to a closed-door meeting with the House Ways and Means Committee, emphasized the significance of the trading relationship between Canada and the U.S., noting the substantial economic contributions and job creation resulting from bilateral trade. The U.S. Trade Representative’s office reported that U.S. exports to Canada amounted to $909 billion in 2024.
Amid ongoing trade tensions and tariff impositions by President Donald Trump, CUSMA serves as a vital shield for Canada against many tariffs, safeguarding a significant portion of Canadian exports. Despite this, certain Canadian exports, such as steel, aluminum, automotive products, and kitchen cabinets, continue to face tariffs. Talks to alleviate the steel and aluminum tariffs were halted in October following a dispute triggered by an anti-tariff advertisement campaign by the Ontario government. Hillman confirmed that there are no scheduled resumptions of these discussions.
In further developments, Hillman announced her forthcoming resignation as ambassador in the coming year, having served in the position since 2020. Prime Minister Mark Carney has yet to disclose Hillman’s successor.
