Question Period Note: CUSMA Review

There is some uncertainty regarding how the United States will approach the upcoming CUSMA trilateral review in a context of unjustified tariffs imposed on Canadian and Mexican imports.

• We recognize the possibility that the United States may push to review and revisit CUSMA earlier than July 2026.
• My department has already conducted formal public consultations through the Canada Gazette (fall 2024), and stakeholder engagement continues. The government is also meeting on a regular basis with provincial and territorial governments to exchange views and discuss strategy
• Global Affairs Canada is coordinating efforts with all relevant federal government departments, finalizing its thorough preparation in anticipation of the review.
• Canada is ready to engage the United States and Mexico on the review.

CUSMA includes a commitment to jointly review the Agreement starting on the sixth anniversary of its entry into force, a forum that also provides the opportunity for the Parties to make specific proposals to amend the Agreement. There is some uncertainty regarding how the US will approach this upcoming joint review in the context of unjustified tariffs on Canada and Mexico. In the America First Trade Policy Memorandum, President Trump instructed the US Trade Representative (USTR) to initiate domestic consultations regarding CUSMA, assess the impact of the Agreement on the US, and then report back on its' findings.

The Executive Summary of the America First Trade Policy report, published on April 3, explicitly references "renegotiation" of CUSMA, and notes that "numerous changes are needed" to the Agreement, with specific references to seeking stronger rules of origin to reduce the inflow of non-market economy content into the US, the need to expand market access (specifically mentioning the Canadian dairy market), and Mexico's discriminatory practices in the energy sector. The US also contends that Canada's digital regulations (Digital Services Tax, Online News Act, Online Streaming Act) are discriminatory, and it has included Canada's Zero Plastic Waste Agenda and Quebec's Bill 96 in the latest - March 31, 2025 - National Trade Estimate Report on Foreign Trade Barriers, which details what USTR perceives as trade barriers. While the US could seek to address these issues in the context of the CUSMA review, it could also elect to pursue them separately, including within broader bilateral economic and security discussions.

Canada is ready to engage the US and Mexico on the review, including areas of potential adjustment, at any time. Priorities for Canada will be to keep the review as narrow and targeted as possible, preserve market access into the US, to target areas that are in Canada's interest to modernize (e.g. economic security), and to secure a prompt 16-year extension of the Agreement's term.

President Sheinbaum signaled that she would like to see a more balanced usage of the CUSMA rapid response labour mechanisms and to protect workers' rights.

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