Canada’s ambassador to the United States is playing down indications from the Trump administration that it may split the North American free trade agreement into separate deals with Mexico and Canada. Kirsten Hillman, who is also Canada’s lead negotiator in trade discussions with the U.S., emphasized that the fundamental regulations of the Canada-U.S.-Mexico Agreement (CUSMA) are applicable to all three nations. She mentioned that the trilateral foundation of the agreement remains strong, and there have been no signals from the U.S. side suggesting a desire to alter this foundation.
This statement from Hillman follows remarks made by U.S. Trade Representative Jamieson Greer about the possibility of establishing individual trade agreements with Canada and Mexico instead of continuing with CUSMA. Greer highlighted the differences in economic relationships, labor situations, import-export profiles, and rule of law between the U.S. and each neighboring country, suggesting that separate discussions could be more suitable.
Greer revealed that there haven’t been joint trade discussions with Canada and Mexico throughout the year, but he has engaged in separate talks with officials from each nation. In response, Hillman noted that bilateral discussions are common and expressed confidence that CUSMA, or an updated version of the agreement, will persist.
She reassured that there is no need for alarm, emphasizing the importance of a stable and predictable trade relationship among the three countries for mutual prosperity. All three countries must confirm by July 1 of the following year whether they intend to extend, renegotiate, or terminate the agreement. Greer is required to submit a report to Congress by January 2 outlining the administration’s plans regarding the trade deal, with any country having the option to withdraw from CUSMA by providing a six-month notice.
Dominic LeBlanc, the minister overseeing Canada-U.S. trade, echoed Hillman’s sentiments, stating that he sees no indications of the U.S. dismantling CUSMA. Hillman, ahead of a meeting with the House Ways and Means Committee on Capitol Hill, highlighted the importance of maintaining strong trade relationships with Canada for job creation and economic activity in U.S. communities.
Despite the strains in the Canada-U.S. trading relationship due to tariffs imposed by President Trump, CUSMA provides essential protection for Canadian exports from most tariffs. Discussions have been ongoing to reduce tariffs on steel and aluminum, but talks were halted in October. Hillman confirmed that there are no plans for resuming these discussions. Additionally, she announced her upcoming resignation as ambassador in the new year, with the appointment of her successor pending Prime Minister Mark Carney’s decision.