The United States Trade Representative (USTR) has officially announced the start of a 45-day public consultation process ahead of next year’s scheduled review of the Canada–U.S.–Mexico Agreement (CUSMA), the cornerstone trade pact linking North America’s three largest economies.
The consultations, which will include a public hearing in November, mark the first formal step toward assessing and potentially renegotiating the deal that replaced NAFTA during former President Donald Trump’s first term.
Prime Minister Mark Carney welcomed the announcement, noting that Canada intends to engage proactively with its partners in Washington and Mexico City to protect Canadian interests.
“Canada and Mexico have a strong relationship built on more than three decades of free trade,” Carney said in a statement. “In the face of a shifting global landscape, we are focused on elevating our partnerships in trade, commerce, security, and energy.”
Key Issues at Stake
While CUSMA has shielded Canadian and Mexican exports from some of the most severe U.S. tariffs, Canada continues to face major duties on steel, aluminum, copper, and automobiles under Trump’s separate national security tariff regime. Ottawa has made clear that a priority ahead of the CUSMA review is finding a bilateral “off-ramp” for these sectors to protect jobs and investment.
David Paterson, Ontario’s trade representative in Washington, stressed the importance of predictability for businesses on both sides of the border:
“Probably the biggest concern is that it’s very hard for people to make investment decisions when there’s uncertainty around tariffs and trade rules,” Paterson said.
Richard Madan, Manitoba’s U.S. representative, emphasized the importance of agri-food integration under CUSMA, noting that Manitoba exported $4.29 billion in agri-food products to the United States in 2024 while importing $1.9 billion.
Business and Sectoral Focus
The review process is expected to attract input from American businesses that rely heavily on cross-border trade. Sectors including critical minerals, aviation, defence, automobiles, and agri-foods are likely to be front and centre in the consultations.
Upcoming Diplomatic Engagements
Prime Minister Carney will travel to Mexico later this week to meet President Claudia Sheinbaum as part of Canada’s coordinated approach to the review. Foreign Affairs Minister Anita Anand and Finance Minister François-Philippe Champagne have already visited Mexico to lay the groundwork for trilateral cooperation.
CUSMA’s six-year review clause was a key demand of the Trump administration when the agreement was signed. President Trump has indicated he is seeking more than a technical review and is open to renegotiating provisions he views as outdated or inadequate for advancing U.S. trade interests.
Carney has signalled that Canada may also seek revisions, particularly regarding national security exemptions that have allowed Washington to impose tariffs on Canadian goods — a move Ottawa has criticized as unjustified and damaging to North American competitiveness.