Trade Turbulence: CUSMA Review, UAW Demands, and Canada’s Strategic Moves

Toronto, ON – June 1, 2026

We are writing to provide a concise update on the latest developments impacting Canada’s trade landscape, with a focus on the CUSMA (USMCA) review, sectoral advocacy, and regulatory changes, and emerging opportunities for business.

CUSMA State of Play & Trade Crunch

• Negotiation Status: The U.S. and Mexico have begun formal CUSMA review talks, focusing on rules of origin and economic security. Canada has been excluded from initial rounds, raising concerns about being presented with pre-negotiated terms. The July 1 review deadline is approaching, with options to renew, withdraw, or enter annual reviews.
• Tariffs: Despite CUSMA, the U.S. has confirmed that tariffs on Canadian goods (steel, aluminum, autos, etc.) will remain, citing national security and trade deficit concerns. Relief is only being offered to companies relocating production to the U.S.
• Auto Sector: The U.S. is pushing for higher North American and U.S. specific content in vehicles, which could disrupt Canadian supply chains and investment.

Sector Voices & Advocacy

• Agri-Food: The agri-food sector has secured a strong voice in CUSMA talks, with Michael Harvey (Canadian Agri-Food Trade Alliance) appointed to the Canada-U.S. Economic Relations Advisory Committee. The sector is prioritizing food security and market access.
• UAW Demands: The United Auto Workers (UAW) union is calling for major changes to USMCA/CUSMA, including “Build here to sell here,” real labour rights, and strong cross-border standards. They advocate for quota systems and wage floors, especially to address job losses to Mexico.

Regulatory & Political Developments

• CRTC 15% Rule: The CRTC has tripled the levy on streaming platforms, requiring 15% of Canadian revenues to fund local content. This move has triggered U.S. trade backlash, with American officials and industry groups calling it discriminatory and warning of possible retaliatory tariffs. Conservative Leader Pierre Poilievre opposes the rule, citing consumer cost and trade risks.
• Alberta Referendum: Alberta will hold a non- binding referendum in October on whether to begin the legal process for a future independence vote. PM Carney and Minister LeBlanc have emphasized Alberta’s essential role in Canada, while opposition leaders, including Poilievre, are campaigning for unity.
• PM & Smith Energy Deal: Prime Minister Carney and Premier Smith have signed a pivotal energy agreement, linking a new oil pipeline proposal to increased carbon pricing and carbon capture projects. The deal aims to balance energy development with climate commitments, though it faces industry and environmental scrutiny.

International Trade & Partnerships

• India Trade Mission: India’s Commerce Minister Piyush Goyal is in Canada with 150 business leaders to accelerate a Comprehensive EconomicPartnership Agreement(CEPA). Both countries aim to triple bilateral trade to $50 billion by 2030, focusing on energy, agri-food, technology, and education.
• Canadian Mine in Mexico: A CUSMA panel found severe labour rights violations at the Canadian-owned Camino Rolo mine in Mexico. The case highlights the importance of compliance with CUSMA’s labour provisions and reputational risks for Canadian firms abroad.

Government Funding & Business Opportunities

• Federal Procurement: The Canadian government is procuring $300 billion annually in contracts, with new tools to help businesses identify and bid on opportunities. Companies are encouraged to register and expand their service offerings to access more contracts.
• Investment Incentives: PM Carney is pitching Canada as an investment destination, targeting $1 trillion in new capital over five years, with $280 billion in federal incentives for sectors like energy, critical minerals, and technology.

How GTA Strategies Can Help

GTA Strategies offers:

1. Trade Policy Analysis: Guidance on CUSMA developments, sectoral impacts, and regulatory risks.
2. Government Relations: Advocacy support for engaging with policymakers and advisory committees.
3. Market Diversification: Strategies for leveraging new trade agreements (e.g., with India) and mitigating U.S. market risks.
4. Funding Navigation: Assistance in identifying and securing government procurement and incentive programs.
5. Crisis & Reputation Management: Support for companies facing compliance or labor issues abroad.

If you are interested in any of these programs or would like to discuss your eligibility, please reply to this email or contact us directly at info@gtastrategies.com or by phone at (888) 241 9948 ext 1.

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