U.S. President Donald Trump’s trade representative has outlined a series of conditions Canada must meet to secure a long-term extension of the Canada-United States-Mexico Agreement when it comes up for mandatory review next year, setting the stage for potentially contentious negotiations.U.S. Trade Representative Jamieson Greer told members of Congress on Wednesday that while CUSMA has delivered benefits, the agreement falls short of what the Trump administration would consider an automatic renewal. Without changes, Greer said the president could opt to revert to annual reviews rather than extending the pact for another 16 years, a scenario Canada has sought to avoid due to the uncertainty it would create for exporters and investors..Greer said U.S. exports to Canada and Mexico have increased by 56% since 2020 but argued the agreement has not been an “unqualified success.” He said his office would continue negotiating while keeping all options available to the president, recommending renewal only if outstanding issues are resolved.The comments mark a shift from Trump’s earlier praise of the agreement, which he negotiated during his first term and described at the time as the best trade deal the United States had ever signed.Speaking in Ottawa later the same day, Prime Minister Mark Carney said Greer’s remarks should be viewed as part of a broader and complex negotiation process rather than a definitive list of demands..“These are a subset of issues in a much bigger discussion,” Carney said, adding that Canada would only sign an agreement that serves the interests of Canadian workers and families.Greer identified Canada’s supply-managed dairy system as a key concern, calling for expanded market access for U.S. dairy products and changes to Canada’s exports of certain dairy ingredients. American producers have accused Canada of undercutting U.S. prices, though Greer stopped short of calling for the dismantling of supply management.Carney said Canada’s position on supply management has not changed.“We’ve been clear about our approach to supply management,” he said. “We continue to stand by that. We will continue to protect supply management.”.Ontario Premier Doug Ford echoed that stance, saying he was “unwavering” in his support for dairy, poultry and egg farmers. He noted that U.S. producers have not fully used existing tariff-free dairy quotas, arguing that claims of restricted access are overstated.Greer also criticized Canada’s Online Streaming Act, which brought platforms such as Netflix, Spotify and YouTube under Canadian broadcasting rules, saying it discriminates against U.S. technology and media firms and should be revised. He did not specify what changes Washington is seeking.Another flashpoint is provincial restrictions on U.S. alcohol products imposed in response to American tariffs on steel, aluminum, autos and lumber. Those measures have significantly reduced U.S. alcohol sales in Canada..Ford said Ontario would not lift restrictions on U.S. alcohol until there is tariff relief or a broader trade deal in place. He pointed to strong growth in Ontario wine and spirits sales since the measures were imposed and said the province is prepared to reconsider once a “great deal” is reached.Greer’s remarks did not address whether the United States would lift existing section 232 tariffs on Canadian goods. Carney said Canada had previously been close to a sectoral agreement covering steel, aluminum and energy, but that talks stalled and are now likely to be folded into the broader CUSMA review.“My judgment is that this is now going to roll into the broader CUSMA negotiation,” Carney said, adding that Canada remains ready to pursue sector-specific agreements if Washington is willing..Greer also flagged what he described as discriminatory procurement policies in Ontario, Quebec and British Columbia, complex customs registration requirements, and Alberta’s treatment of electricity distribution affecting providers in Montana.He further raised concerns about regulatory disputes in the Gulf of Maine, including tensions between Canadian and American lobster fishers in the so-called grey zone near New Brunswick and Maine, though he stopped short of listing the issue as a formal condition for renewal.Despite the growing list of disputes, Greer told lawmakers that business and labour groups across North America broadly support maintaining the agreement, while also calling for targeted improvements..Carney said Canada sees significant value in deeper integration in sectors such as autos, steel, aluminum, forestry, aerospace and critical minerals, but stressed that secure and stable market access remains essential.“We need a structure that aligns incentives on both sides of the border and restores certainty for Canadian businesses and households,” he said.Greer said the administration remains open to bilateral deals with Canada and Mexico but suggested some issues, including rules of origin, critical minerals and economic security, are best addressed through a trilateral framework.
