The United States is initiating a review of the Canada-U.S.-Mexico Agreement (CUSMA) as part of President Donald Trump's ongoing efforts to reshape continental trade. The U.S. Trade Representative announced the start of 45 days of public consultations, which are required before the scheduled review of the trade pact next year. A preliminary notice in the Federal Register, set to be published soon, indicates that a public hearing will also take place in November.

This marks the first official step toward potentially renegotiating the trade deal, which was established during Trump's first term. While Trump has praised CUSMA, he has also referred to it as “transitional” and questioned its ongoing necessity. The agreement has provided some protection for Canada and Mexico against Trump's broader tariff initiatives, which have targeted various countries worldwide.

Despite being early targets of Trump's tariffs, Canada and Mexico have been shielded from these duties on goods that comply with CUSMA. This has led to an increase in businesses seeking to ensure their compliance with the agreement. Prime Minister Mark Carney has noted that CUSMA places Canada in a favorable position compared to other nations, including those with bilateral agreements with the U.S.

Canada and Mexico continue to face challenges from separate tariffs imposed by Trump on steel, aluminum, copper, and automobiles. Canadian officials are prioritizing a bilateral economic and security agreement to address these sectors ahead of the CUSMA review.

David Paterson, Ontario’s trade representative in Washington, stated that he has been in discussions with various American sectors that depend on CUSMA. He expressed optimism about the consultations, emphasizing the need for predictability and certainty in investment decisions. “I’m very glad that these things are moving ahead right now because the thing that we all need is predictability and certainty for investment,” he said.

Richard Madan, Manitoba’s representative to the U.S., highlighted the importance of showcasing the benefits of CUSMA. He aims to encourage U.S. partners to share success stories and data that demonstrate the positive impact of the agreement on both economies. Madan pointed out that Manitoba exports significant amounts of agri-food products to the U.S., which have benefited from seamless trade under CUSMA.

Carney is scheduled to visit Mexico this week to meet with President Claudia Sheinbaum as part of the ongoing discussions surrounding the trade pact. The two leaders previously met during the G7 Summit earlier this year. Carney emphasized the strong trade relationship between Canada and Mexico, stating, “In the face of a shifting global landscape, we are focused on elevating our partnerships in trade, commerce, security, and energy.”

The negotiation of CUSMA was a significant challenge for Canada following Trump's election. Former U.S. trade representative Robert Lighthizer described the negotiations as difficult and at times contentious. The Trump administration included a six-year review requirement in the deal, indicating that the process may not be straightforward. Carney has also indicated that Canada seeks to amend certain aspects of the trade agreement, particularly concerning national security exemptions that have led to tariffs on Canadian goods.