Post by : Meena Ariff

The United States has set out explicit criteria that Canada needs to fulfill for a prolonged extension of the Canada-U.S.-Mexico Agreement (CUSMA). U.S. Trade Representative Jamieson Greer informed legislators that although the agreement has enhanced American exports by more than 50% since 2020, it is lacking in several respects, necessitating modifications prior to any renewal.

The U.S. is urging Canada to broaden access to American dairy products, arguing that existing policies limit trade and potentially undermine U.S. producers. While Canada permits limited tariff-free imports, the U.S. dairy lobby seeks to lighten these restrictions to enhance market opportunities. Additionally, Canada’s Online Streaming Act, which governs platforms like Netflix, Spotify, and YouTube, is under examination. The U.S. contends that current regulations unfavorably impact American tech and media firms and anticipates revisions to foster a more equitable environment.

Provincial regulations restricting U.S. alcohol sales have significantly affected companies like Brown-Forman. U.S. officials are advocating for the easing of these constraints, connecting them to earlier tariff conflicts. Also on the U.S. agenda are discriminatory procurement practices in Ontario, Quebec, and British Columbia, along with complex customs registration requirements. Issues regarding Alberta’s treatment of U.S. energy firms and regulatory inconsistencies in lobster fisheries adjacent to New Brunswick and Maine are noted as additional areas needing attention.

Greer highlighted that while the business sector and labor groups predominantly favor the continuation of CUSMA, necessary improvements are crucial to ensure fairness and safeguard American interests. He hinted at the possibility of exploring bilateral agreements with Canada and Mexico, with trilateral cooperation being beneficial for issues like critical minerals and rules of origin.

This represents a notable change from previous American commendations of CUSMA, signaling the onset of tougher negotiations. Canada is now under pressure to implement essential policy modifications to avoid reverting to annual reviews, which could instigate ongoing trade instability.

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