U.S. Trade Representative Jamieson Greer presented a set of requirements on Wednesday for Canada to meet in order to extend the Canada-U.S.-Mexico Agreement (CUSMA) during the upcoming review next year. This disclosure marked the first public revelation of the administration’s expectations from Prime Minister Mark Carney to secure the long-term continuity of the pact.
Greer addressed Congress, stating that while CUSMA has shown a degree of success, certain modifications are necessary before President Trump considers extending it for another 16 years or shifting to annual reviews, a scenario Canada aims to avoid due to the resulting yearly uncertainty. Despite acknowledging the boost in American exports to Canada and Mexico by 56 percent since 2020, Greer emphasized that the agreement’s deficiencies prevent a simple endorsement.
The Trade Representative emphasized keeping the president’s options open, indicating a firm negotiation stance to address the identified issues and only recommending renewal if resolutions are attainable. This stance diverges from Trump’s previous praise of the trilateral trade deal, which he once hailed as the best agreement ever made.
Greer outlined that the U.S. will target specific Canadian policies, including the Online Streaming Act, which subjected online platforms like Netflix, Spotify, and YouTube to Canadian broadcasting regulations. Additionally, he highlighted the need for Canada to enhance market access for U.S. dairy products and address alleged export practices affecting American dairy producers.
Regarding the provincial bans on U.S. alcohol distribution in Canada, Greer urged for their resolution, emphasizing their impact on American businesses, such as the significant sales decline experienced by Brown-Forman, the maker of Jack Daniel’s. Notably, Greer’s document did not mention the removal of section 232 tariffs imposed by Trump on key Canadian sectors, indicating ongoing trade tensions.
As the CUSMA review progresses, Greer emphasized the necessity for Canada to address discriminatory procurement practices in certain provinces, customs registration complexities for Canadian companies receiving U.S. exports, and unfair treatment of electrical power distribution providers in Montana by Alberta. He also mentioned regulatory imbalances concerning Canadian fishers in the disputed “grey zone” near New Brunswick and Maine.
In a positive development for Canada, Greer acknowledged widespread support for continuing the agreement in some form among North American business and labor groups who provided testimony during previous hearings on CUSMA. While leaving room for potential separate bilateral deals with Canada and Mexico, Greer highlighted the importance of collaborative approaches on continental-wide issues with all three partners.
