U.S. Trade Representative Jamieson Greer outlined a set of requirements on Wednesday that Canada must meet to extend the Canada-U.S.-Mexico Agreement (CUSMA) during the upcoming review. This marks the first time the Trump administration has made public its expectations for Prime Minister Mark Carney to secure the pact long-term.
Greer informed Congress that while CUSMA has shown some success, changes are necessary before President Trump agrees to a 16-year extension or reverts to annual reviews, a scenario Canada aims to avoid due to the resulting uncertainty each year.
According to Greer, although American exports to Canada and Mexico have surged by 56% since 2020 under CUSMA, he believes that the agreement is not an unequivocal triumph. He emphasized that a mere endorsement of the deal is not in the national interest due to its shortcomings.
The U.S. will focus on challenging two key Canadian policies: the Online Streaming Act, which subjects online platforms like Netflix and Spotify to Canadian broadcasting regulations, and the supply-managed dairy sector. Greer stressed that for the CUSMA review to succeed, Canada must enhance market access for U.S. dairy products and address its exports of certain dairy items, hinting at alleged practices that disadvantage American producers.
While Greer did not advocate for the complete dismantling of Canada’s supply management system, he urged Congress to address policies that unfairly limit market access. Additionally, he flagged the need for revisions to the Trudeau-era streaming legislation, which he believes discriminates against U.S. tech and media firms.
Furthermore, Greer urged Canada to resolve the provincial bans on distributing U.S. alcohol beverages, which were implemented in response to Trump’s tariffs on key sectors like steel and aluminum. Notably, these prohibitions have significantly impacted sales for U.S. spirits giant Brown-Forman, prompting diplomatic tensions between the two countries.
Greer’s document did not address the lifting of section 232 tariffs imposed by Trump on critical Canadian sectors. However, he highlighted the concessions Carney has made to seek tariff relief, including scrapping Canada’s Digital Services Tax and rolling back retaliatory tariffs.
As part of the CUSMA review, Greer stressed the need for Canada to tackle discriminatory procurement practices in certain provinces and complex customs procedures for Canadian companies receiving U.S. exports. Additionally, he called for Alberta to address its treatment of electrical power distribution providers in Montana.
While Greer mentioned regulatory imbalances concerning Canadian fishers in the “grey zone” near New Brunswick and Maine, he did not specify it as a condition for CUSMA renewal. This issue revolves around tensions between Canada and the U.S. over lobster catches in the Gulf of Maine.
In a positive development, Greer acknowledged widespread support from North American business and labor groups for continuing some form of the agreement. While stakeholders called for an extension, they also advocated for improvements to the deal. Greer suggested the possibility of separate bilateral agreements with Canada and Mexico instead of a comprehensive trilateral pact, although certain continental-wide issues may necessitate collaborative solutions with all three partners.