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 its upcoming review, shedding light on the administration’s expectations from Prime Minister Mark Carney to secure the pact for the long run. Greer, in his address to Congress, emphasized that while CUSMA has shown some success, certain changes are necessary before President Donald Trump agrees to extend it for another 16 years or opts for yearly reviews, a situation Canada hopes to avoid due to the resultant annual uncertainty.
According to Greer, although CUSMA has significantly boosted American exports to Canada and Mexico by 56 percent since 2020, there are deficiencies that prevent a straightforward endorsement of the agreement in the national interest. His office will maintain flexibility, negotiating firmly to address the identified issues, and only recommending renewal if satisfactory resolutions are reached.
This stance reflects a departure from Trump’s previous praises of the trilateral trade deal he orchestrated during his first term, where he hailed CUSMA as “the best agreement we’ve ever made.”
Greer outlined that the U.S. will target two main Canadian policies: the Online Streaming Act, which subject online platforms like Netflix, Spotify, and YouTube to Canadian broadcasting regulations, and the supply-managed dairy sector. For a successful CUSMA review, Canada must enhance “market access for U.S. dairy products” and tackle issues related to “Canada’s exports of certain dairy products.” While not advocating for the complete dismantling of supply management, Greer stressed the need to address Canadian policies that unfairly restrict market access.
Regarding the provincial bans on the distribution of U.S. alcohol beverages in Canada as a form of protest against Trump’s tariff actions in key sectors, Greer urged Canada to resolve these issues. These bans have had a significant impact, with U.S. spirits giant Brown-Forman experiencing a more than 60 percent decline in Canadian sales. The U.S. ambassador to Canada, Pete Hoekstra, highlighted the impact of these restrictions on bilateral relations and Canadian tourism to the U.S.
Greer’s requirements also include addressing discriminatory procurement measures in certain Canadian provinces and customs registration complexities for Canadian companies receiving U.S. exports. Additionally, revisiting Alberta’s treatment of electrical power distribution providers in Montana and resolving regulatory imbalances with Canadian fishers in the “grey zone” near New Brunswick and Maine are part of the demands outlined for the CUSMA review.
Despite the challenges, Greer acknowledged the general support for continuing the agreement in some form from business and labor groups across North America. He mentioned the possibility of separate bilateral deals with Canada and Mexico as an alternative to the current trilateral pact, while noting that certain continental-wide issues are best addressed collaboratively among all three partners.