Question Period Note: Export support to Canadian companies affected by U.S. tariffs

On March 7, 2025 the U.S. paused its IEPPA (fentanyl-border related) tariffs on goods imported from Canada that qualify for duty-free preferential treatment under the Canada-U.S-Mexico Agreement.

» The Government of Canada is committed to helping Canadian exporters access the U.S. market duty-free, whenever possible, by taking advantage of the provisions in the Canada-U.S.-Mexico Agreement (CUSMA).

» The Trade Commissioner Service continues to provide in-market support to Canadian exporters across its 16 offices in the U.S., including at our Embassy in Washington. The TCS Regional Offices across Canada can connect exporters to offices in the U.S. and around the world.

» Most Canadian goods can still enter the U.S. market duty free if they qualify under CUSMA. Information and tools are available on the TCS website to help exporters certify that their goods qualify, including a dedicated 1-800 support line to learn more about how to become CUSMA

» The Government is committed to helping Canadian businesses grow by diversifying to new markets. The Trade Commissioner Service offers advice and support to Canadian exporters from 150 locations outside Canada, serving over ten thousand Canadian business clients in 2024-25

» The Government is working to increase Canada's existing network of 15 free trade agreements, which already cover economies representing 61% of global GDP. In 2024, Export Development Canada (EDC) opened new representations in Japan, Vietnam and the Philippines.

While Canadian exports to non-US markets increased 50% between 2017 and 2024, 70% of Canada's exports still went to the US in 2024. The share of Canada's exports destined for the US has consistently ranged between 70-80% for decades.
On March 7, 2025, the U.S. paused its IEPPA (fentanyl-border related) tariffs for goods imported from Canada that qualify for duty-free preferential treatment under the Canada-U.S.-Mexico Agreement (CUSMA), with subsequent tariffs imposed on steel and aluminum and automobiles. Prior to March 7, many Canadian exporters did not take advantage of CUSMA preferential tariff rates, since Most-Favoured Nations tariffs were low or duty-free.
To support Canadian exporters in accessing the U.S. market tariff-free under the CUSMA, the Trade Commissioner Service, noting small and medium sized enterprises were least likely to have the resources and expertise to take advantage of CUSMA preferential tariff rates:
· Undertook broad consultations with national industry associations to assess support needs;
· Created a comprehensive toolkit on the Trade Commissioner Service website, including a step-by-step guide to CUSMA compliance. To date, this content has generated over 37,000 visitors.
· Set up a 1-800 dedicated support line for exporters to learn about CUSMA compliance
· Continued to support exporters through the TCS network in the U.S. and across Canada with dedicated one-on-one services, including troubleshooting.

Trade diversification away from the United States remains a longstanding priority for the Government of Canada, reflecting a desire to see Canadian companies achieve their full potential through international growth and to address risks of export concentration.

Canada has an unparalleled set of 15 free trade agreements (FTAs) spanning 51 countries and covering 61% of global GDP. FTA negotiations with Indonesia and Ecuador were recently concluded; negotiations with the Association of Southeast Asian Nations (ASEAN) and exploratory talks with the Philippines are ongoing.

Canada's Trade Commissioner Service (TCS) is present in over 160 cities world-wide. In 2024-25, 10,460 Canadian businesses received almost 60,000

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