The US wants Canada to expand access to American products in the dairy market and lift provincial alcohol bans in the US as part of an upcoming review Canada-United States-Mexico Agreement (CUSMA)says Washington's top trade representative.
U.S. Trade Representative Jamison Greer told members of Congress this week that the joint review “will be contingent on the successful resolution” of these and other issues, according to a copy of his opening statement is posted online after closed meetings.
The statement also lists “the impact of Canada's Streaming Act and the Online News Act on U.S. digital service providers,” “discriminatory procurement practices in Ontario, Quebec and British Columbia,” and “complicated customs registration for Canadian recipients of U.S. exports.” Another item on the list was Alberta's “unfair treatment” of electricity providers in Montana.
As for Canada and Mexico, Greer listed efforts to tighten rules of origin for non-automotive manufactured goods and “mechanisms to penalize the relocation of American manufacturing” to two other North American countries.
The statement said the list of questions was drawn up as a result of public consultations the US held this fall to prepare for a mandatory review scheduled for next July.
According to its opening statement, CUSMA has “made some progress” and “provided some certainty to trade in North America,” Greer told the U.S. House Budget Committee and the U.S. Senate Finance Committee on Tuesday and Wednesday.
“But at the same time, it is clear that we have not achieved all of our goals for strengthening U.S. manufacturing capacity and creating good jobs, and almost all stakeholders are in favor of improvements.”
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Greer goes on to lay out the “flaws” of the trade agreement, some of which are unique to Mexico and Canada.
“For its part, Canada is insisting on maintaining its Online Streaming Act, a law that discriminates against U.S. technology and media firms, as well as a number of other measures that restrict trade in digital services,” Greer said.
“Canada also has policies that unfairly restrict market access for U.S. dairy products.”
Canada Supply Management System allows duty-free imports of some U.S. dairy products, but imposes high tariffs above these quotas protect domestic producers.
CUSMA, which was negotiated during US President Donald Trump's second term and replaced NAFTA, expanded US access but continues to face criticism from Trump, Greer and US dairy producers.
Greer said increasing access to the Canadian dairy market was a key issue raised in written public comments.
Prime Minister Mark Carney promised as part of the Liberals' election platform that he “will not discuss supply management in Canada in any negotiations with the United States.” In June, Ottawa passed legislation that effectively codified this obligation into law.
Trump recently wondered if he could allow CUSMA to expire. rather than extending it, while Greer said all options for the future of the pact – an extension, moving to annual reviews or a complete withdrawal – were possible for the US.
Carney and Canadian and US Trade Minister Dominic LeBlanc They said they didn't see any signs The US is considering withdrawing from CUSMA.
Greer told congressional committees this week that he believes “whatever the value (of CUSMA) to the United States and even North America, the disadvantages are such that it would not be in the national interest to formally sign the agreement.”
“USTR will keep the president's options open, pursuing firm negotiations to resolve identified issues, but only recommending an extension if a solution can be reached,” he added.
“Through robust negotiations, USTR will engage with Mexico and Canada to determine which deficiencies can be addressed bilaterally and which require trilateral resolution.”
Greer seemed to have more praise for Mexico's negotiating status than Canada, although he noted successful efforts to persuade Ottawa to repeal its digital services tax and raise retaliatory tariffs on U.S. goods subject to CUSMA rules.
Trump suspended trade talks with Canada in October and has since shown no interest in resuming them, although he did discuss trade with Carney and Mexican President Claudia Sheinbaum during the meeting. private meeting on the sidelines of the World Cup draw in Washington this month.
Immediately after the suspension of trade negotiations U.S. officials said it was “difficult” for Canada to negotiate.
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