Operation and Effectiveness of the Canada–United States–Mexico Agreement (CUSMA)
The Government of Canada is seeking input from Canadians regarding the operation and effectiveness of the Canada–United States–Mexico Agreement (CUSMA) in preparation for its first joint review in 2026. CUSMA, which replaced the North American Free Trade Agreement (NAFTA) on July 1, 2020, aims to improve North American competitiveness and prosperity by ensuring that Canada maintains its preferential access to the U.S. and Mexico. This Agreement fosters a North American market of 506 million consumers with a combined GDP of $42 trillion, significantly contributing to trade, supply chain integration, and economic certainty.
CUSMA has been instrumental in shaping trade relations in North America over the last three decades, driving significant growth in trilateral merchandise trade. In 2023, this trade reached a total value of $1.93 trillion, marking a 3.5% increase from the previous year. The Agreement establishes high standards across various sectors, including labor, environment, and agriculture, while also integrating provisions focused on gender equality and the rights of Indigenous peoples.
The joint review process, mandated by Article 34.7 of CUSMA, provides an opportunity for stakeholders to evaluate the Agreement’s functioning, discuss its implementation progress, and ensure it can adapt to future economic challenges. Submissions to the consultation will inform Canada’s stance in the 2026 review and during its leadership of the CUSMA Free Trade Commission.
Interested parties are encouraged to submit their views by October 31, 2024, covering specific chapters of CUSMA that align with their interests. The Agreement includes 34 chapters addressing various topics, such as general provisions, market access for goods, agriculture, rules of origin, customs administration, labor and environment, intellectual property rights, digital trade, and dispute settlement.
The government emphasizes the importance of transparency in the consultation process, with submissions becoming official records subject to the Access to Information Act. Contributors should include their name, organization (if applicable), specific issues addressed, and rationales for their positions. Additionally, the government invites input on other topics that may be relevant for the CUSMA 2026 joint review. By engaging a wide array of stakeholders, the Government of Canada aims to ensure that CUSMA effectively supports economic growth and addresses the needs of all Canadians, reinforcing its commitment to maintaining strong trade relations within North America.
For further information and to participate in the consultations, interested parties can visit the official Government of Canada website dedicated to CUSMA consultations, where they can also access the full text of the Agreement and related documents. The government’s proactive stance in gathering insights underscores the importance of collaborative engagement in shaping the future of trade relations in North America.
Canada (Proposed) August 17, 2024