In a public address to Congress on Wednesday, U.S. Trade Representative Jamieson Greer outlined a set of requirements that Canada must meet to extend the Canada-U.S.-Mexico agreement (CUSMA) during its upcoming review next year. Greer emphasized the need for changes to the agreement before President Donald Trump considers extending it for another 16 years or opting for annual reviews, a scenario that Canada aims to avoid due to the resulting uncertainty on a yearly basis.
While acknowledging the partial success of CUSMA in boosting American exports to Canada and Mexico by 56% since 2020, Greer noted that there are deficiencies requiring attention. He stressed that a blanket approval of the agreement is not in the national interest and indicated that renewal would only be recommended if the identified issues are effectively resolved.
Greer highlighted specific areas of concern, including market access for U.S. dairy products and addressing Canadian policies that allegedly hinder fair trade practices, such as the Online Streaming Act and dairy sector regulations. Emphasizing the need for Canada to enhance market access for U.S. dairy, Greer pointed out perceived restrictions that impede fair competition.
Additionally, Greer raised objections to the Canadian streaming legislation, which he claimed discriminates against U.S. tech and media firms. He suggested revisions to the policy without providing specific directives.
Furthermore, Greer urged Canada to address provincial bans on the distribution of U.S. alcohol beverages, a measure initiated in response to Trump’s tariffs on key sectors like steel and aluminum. The impact of these liquor boycotts, notably on U.S. spirits giant Brown-Forman, has been substantial, with Canadian sales plummeting by over 60%.
Although Greer’s document did not address the lifting of section 232 tariffs imposed by Trump on critical Canadian sectors, it acknowledged concessions made by Prime Minister Mark Carney to obtain tariff relief, including the elimination of Canada’s Digital Services Tax and the reduction of retaliatory tariffs.
Greer also emphasized the necessity for Canada to rectify discriminatory procurement measures in certain provinces and simplify customs regulations for Canadian companies receiving U.S. exports. Additionally, he highlighted the need for Alberta to address unfair treatment of electrical power distribution providers in Montana and regulatory imbalances with Canadian fishers in the disputed “grey zone” near New Brunswick and Maine.
While Greer left open the possibility of separate bilateral deals with Canada and Mexico, he suggested that certain continental-wide issues should be collaboratively addressed with all three partners. Despite the call for improvements, there is widespread consensus among North American business and labor groups in favor of continuing some form of the agreement.