Canada and the United States are navigating another period of uncertainty in their economic relationship as discussions continue over trade barriers and the future operation of the Canada–United States–Mexico Agreement, commonly known as CUSMA. The agreement, which came into force in July 2020, established a framework governing trade and investment among the three North American partners. Its first scheduled joint review took place in 2026, providing an opportunity to examine how existing rules are functioning and whether changes may be required.
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The review has attracted particular attention because Canadian industries rely heavily on predictable access to the American market. Automotive manufacturing, agriculture, energy production and industrial supply chains are closely connected across the border. Tariffs and other restrictions can therefore create challenges for companies operating in both countries, particularly when production depends on materials or components moving through several jurisdictions before reaching consumers.
Canada’s federal government has maintained consultations with provincial and territorial representatives as part of its approach to cross-border trade. In July, Canadian officials reported on discussions connected to the CUSMA review, emphasizing the importance of coordination among governments. Public consultations conducted earlier also demonstrated considerable interest among businesses, industry organizations and individual Canadians in maintaining a predictable trading environment while addressing emerging economic risks.
