Update on CUSMA Trade Talks

Advisory Committee, U.S. Demands, and Business Sector Impacts

Toronto, ON – April 25, 2026

We are writing to update you on the latest developments regarding the Canada-U.S.-Mexico Agreement (CUSMA) trade talks, which are entering a critical phase ahead of the mandatory review scheduled for July 1, 2026.

State of Trade Talks

Negotiations: While Mexico and the U.S. have scheduled formal bilateral talks, Canada and the U.S. have not yet set an official start date. Ongoing informal discussions continue, but the process is expected to extend beyond the July 1 checkpoint.

U.S. Demands: The U.S. administration has signaled a desire for Canada to make concessions—described by some as an ‘entry fee’—before formal talks begin. These include changes to dairy supply management, lifting provincial bans on U.S. alcohol, and adjustments to digital and media policies. Prime Minister Carney has firmly rejected the notion of unilateral concessions, stating, “It’s not a case of the United States dictates the terms. We have a negotiation, we can come to a mutually successful outcome. It will take some time, and we will take the time.”

Canada’s Position: Canada is linking CUSMA renewal to resolution of U.S. tariffs on steel, aluminum, lumber, and autos, and will not accept preconditions. Carney has emphasized that Canada is not reliant on the U.S. economy and is prepared to negotiate or wait as needed.

Advisory Committee Appointment

Prime Minister Carney has established a new Advisory Committee on Canada-U.S. Economic Relations, chaired by Minister Dominic LeBlanc. The committee includes leaders from business, labour, and industry, such as Jean Charest, Erin O’Toole, Lisa Raitt, and sector representatives from steel, agriculture, manufacturing, and more. Its mandate is to provide strategic input and ensure Canada’s interests are well represented in negotiations.

Impacts on the Canadian Business Sector

Tariffs and Uncertainty: U.S. tariffs continue to affect key Canadian industries, including steel, aluminum, autos, and forestry. The U.S. is offering tariff relief only if Canadian companies commit to moving production to the U.S., a proposal widely viewed as economically unfeasible.

Sectoral Concerns: The business sector faces uncertainty, with layoffs and facility closures reported in affected industries. The government is committed to supporting workers and businesses through negotiations and will only sign a deal that is beneficial to Canada.

Federal Assistance: While no new direct assistance programs have been announced, the government has signaled readiness to support affected workers and sectors. The Advisory Committee will help inform these efforts and ensure sectoral voices are heard.

Key Takeaways

• Canada is taking a firm, strategic approach to CUSMA negotiations, refusing to accept unilateral U.S. demands.
• The new Advisory Committee will ensure broad sectoral input and strengthen Canada’s negotiating position.
• Businesses should prepare for extended talks and ongoing uncertainty, but federal support and strategic advocacy are available.

How GTA Strategies Can Assist

Should you wish to connect with the Advisory Committee GTA Strategies can facilitate this connection by organizing sector-specific consultations, synthesizing industry input, and preparing actionable reports and recommendations that reflect your business’s concerns and priorities.

GTA Strategies can also support strategic communication and advocacy by preparing briefing notes, policy submissions, and presentations that articulate your challenges and propose solutions. By maintaining regular feedback loops—such as updates, webinars, and Q&A sessions—GTA Strategies ensures that your business’s real-time impacts and needs are communicated directly to Advisory Committee members. This ongoing engagement empowers businesses to influence policy outcomes, access federal support, and navigate trade uncertainty, making GTA Strategies a valuable bridge to the heart of Canada’s trade strategy.

GTA Strategies stands ready to assist with tailored solutions, stakeholder engagement, and risk management.