Trade talks between the United States and Canada are reportedly lagging behind discussions with Mexico, according to U. S. Trade Representative Jamieson Greer. Speaking on Fox Business, Greer indicated that while progress is being made with Mexican counterparts, negotiations with Canada are facing challenges ahead of the mandatory review of the Canada-U. S.-Mexico Agreement (CUSMA), also known as USMCA. The USMCA, which came into effect on July 1, 2020, is a trilateral trade pact that replaced NAFTA.
The Canadian government, however, maintains that CUSMA is beneficial for all three nations. A spokesperson for Global Affairs Canada stated that the agreement strengthens the North American region and supports shared success. Despite this, Greer has previously voiced concerns regarding specific Canadian policies that he believes are impeding negotiations. These include issues related to supply management, the Online Streaming Act, provincial procurement rules, and alcohol distribution policies.
One key area of contention is the growing agricultural trade deficit between the U. S. and Canada. Ambassador Julie Callahan, the chief agricultural negotiator in the Office of the United States Trade Representative (USTR), noted that the deficit has ballooned from $3 billion in 2020 to $11 billion in 2025, despite the USMCA being in effect. The USTR is particularly interested in identifying sectors that are losing out due to these trade imbalances.
The USMCA is subject to a mandatory review by July 1, 2026, and if the parties do not agree to extend it by this date, the agreement will remain in effect until its current termination date in 2036. The coming months will be crucial in determining whether the U. S. and Canada can bridge their differences and ensure the continued success of the trade agreement.
