As of today, the U.S. has formally begun its review of the Canada-US-Mexico-Agreement (CUSMA). This far-reaching trade arc was finalized in the foray of former President Donald Trump’s first administration. American law requires such a full and complete review. It is the first concrete step toward possibly renegotiating the massive trade agreement. As these conversations and negotiations continue, stakeholder voices have begun to weigh on what this CUDA means for North American trade relations.
CUSMA is designed to increase trade between the three countries. It addresses shortcomings that resulted from previous accords. Indeed, the deal is so important that Trump has repeatedly hailed it as among his biggest accomplishments. At the same time, he’s characterized it as “transitional,” inviting questions about its continued need as global dynamics shift. To be clear, the Trump administration already seems to believe the review process won’t be that simple.
So Donald Trump is right when he calls for a full renegotiation, not just to address targeted trade irritants. This position belies a larger desire to rethink how the pact meets today’s economic reality.
David Paterson, Ontario’s trade representative in Washington, has been making the rounds with every other relevant American sector. His specialty is in those businesses that truly depend on CUSMA. He noted the importance of predictability and certainty in trade relationships and how these factors are more important than their mere expensiveness. Uncertainties related to tariffs and trade policy generally make making investment decisions risky.
“I’m very glad that these things are moving ahead right now because the thing that we all need is predictability and certainty for investment.” – David Paterson
In addition to trade activity surging across Canada, Manitoba’s trade with the United States is booming. In 2024, the province was Canada’s largest exporter of agri-foods at $4.29 billion, while importing $1.9 billion. These numbers point to a deeply integrated Canada-U.S. economic relationship. Finally, they focus their case on the value of the review process itself.
Canada and Mexico have a historically close relationship, based on over 30 years of free trade. This partnership has helped shield both nations from some of Trump’s more aggressive trade policies, including massive tariffs aimed at other countries. Canada and Mexico—our closest allies and biggest trading partners—were some of the first victims of these tariffs. Products that meet CUSMA requirements are exempt from those duties.
Mark Carney, former Canada Prime Minister. Think of what CUSMA means for Canada. He highlights its strengths compared to other countries as they all steer through these choppy trade waters. His first trip as special envoy will be this week to Mexico. There, he’s expected to meet with new President Claudia Sheinbaum and perhaps talk about reviewing the trade pact in upcoming years.
“In the face of a shifting global landscape, we are focused on elevating our partnerships in trade, commerce, security, and energy.” – Mark Carney
The six-year review of CUSMA was included in the original agreement by the Trump administration, reflecting an acknowledgment of the need for adaptability in trade relationships. As stakeholders prepare to make their voices heard, it is already apparent that this review has the potential to transform the future of North American trade.
As former U.S. Trade Representative Robert Lighthizer observed, the last administration fearlessly broke with diplomatic tradition to promote its trade agenda. He proposed that future negotiations would have to tackle the especially polarizing issues directly.
“The Trump administration was willing to ruffle diplomatic feathers to advance its trade agenda.” – Robert Lighthizer
Experts have noted that uncertainty surrounding tariffs poses significant challenges for businesses seeking to make investment decisions across various sectors. Richard Madan echoed this fear quite aptly, underscoring the importance of clear and reliable trade policies to economic security.
“Because probably the biggest concern is that it’s very hard for people to make investment decisions in any sectors when there’s the uncertainty of tariffs and there’s uncertainty around these issues.” – Richard Madan
