What we heard report: Consulting Canadians on the operation of the Canada-United States-Mexico Agreement

From August 17 to October 31, 2024, Global Affairs Canada conducted public consultations regarding the Canada-United States-Mexico Agreement (CUSMA), via a Canada Gazette notice. 

We sought the views and experiences of Canadians and interested stakeholders regarding the operation of the CUSMA and how to potentially improve the Agreement in the context of the planned 2026 joint review. Feedback received will help inform Canada's interests, priorities, and next steps regarding the CUSMA.

Summary of consultation submissions

We received 137 written submissions representing a broad range of interests, as follows:

• Industry/business associations (109)
• Provinces/Territories (8)
• Civil Society Organizations (CSOs), labour, and Indigenous groups (13)
• Academia and individuals (7)

Figure 1: Submissions by stakeholder type

What we heard

Stakeholders and partners report that the CUSMA is generally working well. Through their submissions, they provided positive feedback about CUSMA’s implementation, operation and success in facilitating not only Canada’s preferential market access to the United States and Mexico, but also an increasingly integrated and stable North American economy. They also identified a number of areas where the Agreement could be enhanced while underscoring the need to ensure that outcomes align with Canada’s interests.

General themes:

• Stakeholders and partners value the CUSMA, which they recognized as “the gold-standard of free trade agreements” despite rising protectionism and global uncertainty.
• They reported that the CUSMA has been instrumental in ensuring a stable and predictable trading environment for businesses and investment and in facilitating a strong North American economy with integrated supply chains.
• “Preserve” and “strengthen”: they called on the Government of Canada to focus on preserving continuity in the North American trading relationship and the existing benefits of the Agreement, while seeking pragmatic solutions to emerging challenges so that the CUSMA remains relevant and effective in meeting current and future challenges.
• They emphasized the need to be strategic in CUSMA discussions and they recognized the CUSMA consultations as a constructive process in this regard.
• They welcome a continued Team Canada approach to a CUSMA review to highlight the benefits of the Agreement. They also support continued dialogue and engagement between the Government of Canada, stakeholders including industry and civil society, Indigenous Groups, and provincial and territorial governments, to ensure the CUSMA’s continuity and that Canadian interests are protected in discussions with the United States and Mexico.

Business and industry associations

More than 80% of the submissions came from industry and business associations, many of which have extensive memberships, representing companies that collectively contribute billions of dollars to the Canadian economy.

In general, Canadian businesses and national business associations representing broad sectors of the Canadian economy conveyed continuing confidence in the CUSMA. They expressed strong support for the protection and renewal of the Agreement.

The business and investment community called on the Government of Canada to “do no harm” – to preserve predictable tariff-free market access under the CUSMA and to continue to facilitate North America’s economic integration, competitiveness, and resilient supply chains. Stakeholders urged the Government of Canada to address trade irritants in advance of a CUSMA review. Some stakeholders also underscored the need for trilateral cooperation to enhance North America’s economic security and address the risks that unfair non-market policies and practices from third countries pose to the region.

Canadian provincial and territorial governments

The Government of Canada received positive feedback from provinces and territories about the CUSMA, who underscored the importance of maintaining open and predictable trade relations with the United States and Mexico to continue driving the competitiveness and growth of North America. They highlighted the close economic and trade relationships that their stakeholders maintain with U.S. businesses in particular, and they urged the Government of Canada to preserve predictable, tariff-free market access under the CUSMA.

CSOs, labour groups, Indigenous groups, academics and individuals

In general, stakeholders urged the Government of Canada to remain firm and protect Canadian interests and key sectors of the economy, from automotive and supply-managed sectors to aluminum and steel and digital trade sectors. They viewed a review of the CUSMA as an opportunity to address shortcomings relating to economic development, work standards, and important environmental issues not addressed in the CUSMA. Many urged the Government of Canada to continue to engage and dialogue with CSOs, including labour groups, about a CUSMA review.

Some stakeholders recommended establishing a trilateral body, comprising government and stakeholders, such as industry and unions, to identify, review, and make recommendations regarding issues of priority for a CUSMA review. They also recommended taking an inclusive worker-centred approach to a CUSMA review and to ensure the protection of workers rights, human rights, and the environment.

Agriculture and Agri-food

Agricultural stakeholders, including Canadian farmers, processors and exporters, from supply-managed sectors (i.e. dairy, poultry, eggs) urged the Government of Canada to remain firm in protecting and defending Canada’s supply management system. Stakeholders underscored continued support for maintaining a predictable, stable, transparent, and rules-based framework through CUSMA to ensure economic stability for North American trade.

Stakeholders also noted the importance of removing non-tariff barriers to agricultural trade and of maintaining the requirement that measures for food safety, animal health, and plant health be based on science and risk assessments. They underscored that harmonizing or aligning regulations across borders benefits Canadian businesses that rely on effective cross-border trade frameworks in North America to source ingredients and distribute products efficiently, and can help reduce food costs and improve the affordability of food.

Manufacturing

Stakeholders highlighted the need for enhanced regulatory harmonization in the region. They urged the Government of Canada to advance sectoral regulatory cooperation commitments to foster a competitive enabling environment for further growth in manufacturing value chains.

They stressed the importance of seeking guarantees against the arbitrary imposition of measures by the CUSMA partners, such as tariffs or non-tariff barriers, that undermine gains under the CUSMA/other trade agreements that are critical to the Canadian economy. They called for the removal of barriers to trade in government procurement, including Buy America requirements, and for Canada to move ahead with the implementation of a reciprocal procurement policy.

Stakeholders recommended that the commitments under the CUSMA be fully implemented, and that the fair application of technical regulations and standards provisions continue to maximize market access gains. There was broad support for increased alignment of regulatory approaches to provide benefits for consumers and industry.

Some stakeholders also emphasized the need to avoid increasing the restrictiveness or complexity of the rules of origin. They recommended that the Government of Canada encourage greater compliance with CUSMA’s rules of origin in the automotive sector.

Services and investment

Stakeholders called for the reduction of costs and risks of cross-border trade in services and investments through harmonized and transparent customs, border and trade regulations.

Several stakeholders favoured stronger investment and investor protections, including some who supported the reintroduction of the investor-state dispute settlement (ISDS) mechanism on the basis that its absence is detrimental to investments in the natural resources and energy infrastructure sectors; other stakeholders were opposed to such a reintroduction for Canada and application between the United States and Mexico. Another stakeholder urged the use of state-to-state dispute settlement provisions in the CUSMA to address investment challenges in Mexico. 

Some stakeholders also supported maintaining the cultural industries exemption.

Temporary entry

Stakeholders stressed the importance of addressing barriers to business-related travel and temporary labour mobility. They noted some challenges with border-related processes, such as delays in visa processing, fees, or inconsistent application of immigration rules, and recommended targeted updates to the CUSMA’s Temporary Entry for Business Persons Chapter, such as expanding the list of covered professionals or extending benefits to permanent residents.

Intellectual property

With respect to intellectual property (IP), stakeholders encouraged the continued and full implementation of the IP Chapter by all CUSMA Parties, including for those provisions that are subject to transition periods. Stakeholders also encouraged Parties to ensure that the IP Chapter continues to keep pace with changes in the North American technological landscape, to ensure opportunities for commercialization as well as access, including in the areas of copyright and trade secrets.

On patents and pharmaceutical IP, some stakeholders advocated for new protections in these areas with other stakeholders noting the implications that additional IP rules could have for the affordability and accessibility of medicines.

Digital trade, innovation, artificial intelligence

Stakeholders were generally supportive of retaining the trade obligations found in the Digital Trade chapter. They called for the establishment of a more digitally aligned North America. They supported updating the digital trade chapter to reflect the rapid development and use of artificial intelligence (AI), quantum computing and advanced technology, as well as promoting alignment on cybersecurity policy and creating a sectorial annex for advanced technology. With respect to innovation, certain stakeholders encouraged the scope of the CUSMA framework to keep pace with emerging technological developments, such as with respect to AI, interoperability, and regulatory convergence.

Natural resources

Stakeholders recommended that the Government of Canada strengthen critical mineral supply chain security for Canada and the United States.

Some stakeholders stressed the importance of resolving the long-standing softwood lumber dispute between Canada and the United States, as well as the role that a robust dispute settlement mechanism can play in that regard.

Labour

Stakeholders recommended maintaining an inclusive, worker-centred approach to a CUSMA review. They called to improve and expand the application of CUSMA’s Rapid Response Labour Mechanism (RRLM) including to cover other trade-related areas including energy, the broader service sector, agriculture, and migrant workers. They urged that the Government of Canada strengthen enforcement efforts to prohibit the importation of goods made by forced labour and implement mechanisms that more effectively address products made with state-imposed forced labour.

Environment

A number of stakeholders supported updating the environment chapter to include strong and enforceable climate change commitments, the ability to respond more rapidly to environmental concerns, and a coordinated North American approach to addressing imports from countries with lower environmental standards.

Dispute settlement

Stakeholders urged the Government of Canada to protect CUSMA’s dispute settlement mechanisms.

Inclusive trade

Stakeholders supported a continued inclusive trade approach to the CUSMA. They recommended strengthening gender provisions and underscored the importance of protecting the rights of Indigenous Peoples in trade discussions. They also highlighted the need for more targeted resources to help Small and medium-sized enterprises (SMEs) meet regulatory requirements, access financing, and identify market opportunities.

Contact information

We thank everyone who participated in the consultations.

Global Affairs Canada is committed to continuing to hear the views of partners, stakeholders, and interested Canadians on the operation of the CUSMA. You are welcome to share your feedback regarding the CUSMA with Global Affairs Canada at any time, using the contact information below.

Trade Policy and Negotiations – North America
CUSMA Consultations, Global Affairs Canada
John G. Diefenbaker Building
111 Sussex Drive
Ottawa, Ontario  K1N 1J1
Email: CUSMA-Consultations-ACEUM@international.gc.ca