US Sets Tough Demands for Canada to Extend CUSMA Trade Deal

The United States has outlined a clear set of conditions that Canada must meet to secure a long-term extension of the Canada-U.S.-Mexico Agreement (CUSMA). U.S. Trade Representative Jamieson Greer told lawmakers that while the agreement has boosted American exports by over 50% since 2020, it falls short in several areas, and changes are needed before renewal.

The U.S. wants Canada to expand access for American dairy products, citing policies that limit trade and allegedly undercut U.S. producers. While Canada allows some tariff-free imports, the U.S. dairy lobby wants these limits loosened to increase market opportunities. Canada’s Online Streaming Act, which regulates platforms like Netflix, Spotify, and YouTube, is also under scrutiny. The U.S. argues that current rules unfairly disadvantage American tech and media companies and expects revisions to create a more level playing field.

Provincial bans on U.S. alcohol have sharply reduced sales, hitting companies like Brown-Forman hard. U.S. officials are pushing for these restrictions to be eased, linking them to previous tariff disputes. Discriminatory procurement practices in Ontario, Quebec, and British Columbia, along with complicated customs registration requirements, are also on the U.S. agenda. Alberta’s handling of U.S. energy providers and regulatory imbalances in lobster fisheries near New Brunswick and Maine are cited as further issues requiring attention.

Greer emphasized that while businesses and labor groups largely support continuing CUSMA, improvements are necessary to ensure fairness and protect American interests. He also hinted that bilateral agreements with Canada and Mexico could be explored, but continental issues like critical minerals and rules of origin would benefit from trilateral cooperation.

This marks a shift from previous U.S. praise of CUSMA, signaling tougher negotiations ahead. Canada now faces pressure to make key policy adjustments to avoid reverting to yearly reviews, which could create ongoing trade uncertainty.