U.S. Seeks Canadian Concessions for CUSMA Renewal, Details Demand List

The United States is actively seeking concessions from Canada as part of the upcoming review of the Canada-U.S.-Mexico Agreement (CUSMA). Key demands include expanded access to the Canadian dairy market and the removal of provincial restrictions on U.S. alcohol sales. These issues were highlighted by U.S. Trade Representative Jamieson Greer during recent addresses to Congress.

Key Issues in U.S.-Canada Trade Relations

Greer’s statements outline several significant concerns that could impact the review process scheduled for July. Among these issues are:

• Dairy market access for U.S. products.
• Lifting bans on U.S. alcohol in Canadian provinces.
• The effects of Canada’s Online Streaming Act and Online News Act on U.S. digital services.
• Discriminatory procurement practices in Ontario, Quebec, and British Columbia.
• Complicated customs registration for Canadian recipients of U.S. exports.
• Fair treatment for U.S. electricity providers in Montana.

Greer emphasized that the resolution of these issues is critical for the U.S. and that stakeholder feedback has played a role in shaping their priorities.

Current Status of CUSMA

Greer assessed CUSMA as having had some success, providing stability for North American trade. However, he noted that not all U.S. goals regarding manufacturing and job creation have been met. He specifically pointed out weaknesses in the agreement that pertain to both Canada and Mexico.

Canada’s supply management system for dairy products has been a contentious point. It allows limited tariff-free imports from the U.S. but imposes high tariffs beyond those quotas. Greer called for a reevaluation of this system, as it unfairly limits U.S. dairy access.

Canada’s Response to U.S. Demands

Prime Minister Mark Carney has made it clear that Canada will maintain its supply management policies, which he has promised to protect in negotiations with the U.S. Recent legislation in Canada supports this commitment.

In addition to dairy issues, Canada has faced critiques over its Online Streaming Act, which is seen as discriminatory against U.S. tech companies. Greer urged that these barriers must be addressed for improved trade relations.

Future of CUSMA Negotiations

The U.S. is contemplating various paths forward concerning CUSMA—whether to renew the agreement, shift to annual reviews, or even withdraw entirely. While Trump has voiced doubts about extending CUSMA, Canadian officials maintain they have not received indications of a U.S. withdrawal.

Greer remains firm that any renewal of CUSMA must come with a resolution to the identified shortcomings. He expressed a willingness to negotiate with both Canada and Mexico to address bilateral and trilateral issues effectively.

Overall, the upcoming review of CUSMA will require careful navigation of these key demands and issues to foster continued cooperation between the U.S. and Canada.