U.S. initiates consultations for Comprehensive and Progressive Agreement for Trans-Pacific Partnership prior to its scheduled review
The Canada-U.S.-Mexico Agreement (CUSMA) is set for a review, marking the first official step towards potentially renegotiating the continental trade deal. The review process, which is required under American law, was initiated by the United States and will include 45 days of public consultations.
The negotiation of CUSMA, often referred to as 'the new NAFTA,' was a significant test for Ottawa following Trump's first election victory. Since then, agri-food trade under CUSMA has been largely seamless. This integration is critical, and Manitoba, for instance, exported $4.29 billion in agri-foods to the U.S. in 2024, while importing $1.9 billion.
The review process is set to begin in November with a public hearing. Richard Madan, Manitoba's representative to the United States, encourages U.S. partners to share success stories, economic data, or examples of seamless collaboration that CUSMA provides to strengthen both economies. Similarly, David Paterson, Ontario's trade representative in Washington, has been in talks with American sectors and businesses that rely on CUSMA.
Businesses have been waiting for the official start of the review process. A preliminary Federal Register notice has been posted online for the review. The Trump administration has indicated that the review process won't be easy, and the president has suggested he is looking for a renegotiation rather than a review of some trade irritants.
Canada is looking to change some aspects of the continental trade pact, particularly addressing national security exemptions in trade law that allowed Trump to slam Canada with sectoral tariffs. In response, Canada has dropped counter-tariffs on U.S. goods under CUSMA.
Meanwhile, Canada's Foreign Affairs Minister, Chrystia Freeland (Carney), is set to travel to Mexico this week to meet with President Claudia Sheinbaum ahead of the trade pact's review. The two countries have a strong relationship, built on more than three decades of free trade.
The Bank of Canada has delivered the first interest rate cut since March, potentially signaling economic uncertainty amidst the CUSMA review. Former U.S. trade representative Robert Lighthizer recounted the difficult and sometimes contentious negotiations in his book.
It's crucial to note that a smooth and uninterrupted agri-food trade is vital for both Canada and the U.S. As the review process unfolds, it's essential for all parties involved to work together to strengthen the economic ties established under CUSMA.
