Update on CUSMA Trade Talks – May 3

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

Toronto, ON – May 3, 2026

As Canada enters a pivotal period for North American trade, we want to keep you informed about the latest developments affecting your operations, exports, and investment decisions.

CUSMA Review & Trade Negotiations

Economic Committee Meeting: The newly formed Advisory Committee on Canada– U.S. Economic Relations, chaired by Minister Dominic LeBlanc, has convened to guide Canada’s approach to the upcoming CUSMA (Canada–U.S.– Mexico Agreement) review. The committee includes leaders from major sectors, including agriculture, manufacturing, and energy.

Negotiation Status:

• • The U.S. and Mexico have begun bilateral talks, while Canada awaits formal negotiations with the U.S. due to ongoing tensions and demands for concessions.
  • Prime Minister Mark Carney and Mexico’s President Claudia Sheinbaum have agreed to coordinate closely, building on recent trade missions and over 20 new partnerships.
  • Canada is also advancing talks with South American partners, aiming to sign a free trade agreement with Mercosur by year-end.

U.S. Demands & Concessions: 

• • The U.S. is requesting upfront concessions, including ending provincial boycotts of American alcohol and changes to supply management.
  • Canada has made counter-proposals and is insisting on reciprocity, refusing quick deals that undermine CUSMA’s tariff-free core.
  • Carney has rejected offers of immediate tariff relief tied to moving production south, emphasizing the need for comprehensive solutions.

Key Trade & Economic Developments

Export Trends: 

• • The number of Canadian businesses exporting to the U.S. fell for the second consecutive year in 2025, with a sharper decline expected in 2026 due to U.S. tariffs and policy uncertainty.
  • Manufacturing exports to the U.S. dropped 17%, with significant job losses and investment delays. Many firms are seeking new markets, but the U.S. remains irreplaceable for most sectors.

Energy Leverage: 

• • Canada is leveraging its energy exports (valued at nearly $170 billion to the U.S. in 2024) as a key bargaining chip. Energy, electricity, and critical minerals are central to Canada’s negotiating strategy.
  • Major infrastructure projects, including pipeline expansions and new export terminals, are underway to strengthen Canada’s resource and trade capabilities.

Quebec’s Role: 

• • Quebec Premier Christine Fréchette recently visited Washington, meeting with U.S. officials and business leaders.
  • Quebec has appointed Louise Blais as its envoy for CUSMA review, emphasizing protection of supply management and the primacy of the French language.
  • Quebec’s exports to the U.S. remain strong, but tariffs have impacted key sectors like aerospace and aluminum.

Windsor Border Bridge: No final deal has been signed for the Gordie Howe International Bridge opening. Negotiations continue amid concerns about cost overruns and declining border traffic.

Government Support & New Funds

Canada Strong Fund: Canada has launched a $25 billion sovereign wealth fund to boost economic independence and invest in strategic sectors such as clean energy, critical minerals, and infrastructure. The fund aims to reduce reliance on U.S. trade and strengthen domestic asset ownership.

Skilled Trades Fund: The government has committed $6 billion to recruit, train, and hire new workers in skilled trades, supporting major infrastructure and housing projects. This includes wage subsidies, training facility upgrades, and certification reforms.

What This Means for Your Business

Trade Uncertainty: Expect ongoing uncertainty as CUSMA negotiations progress. Canada is prioritizing a disciplined, strategic approach, avoiding rushed deals and leveraging its strengths in energy and resources.
Export Diversification: While diversification is underway, the U.S. market remains critical. Businesses should monitor developments and consider contingency plans for supply chain disruptions.

Government Support: Take advantage of new funding programs for skilled trades and strategic investments. Stay engaged with industry associations and government consultations to ensure your sector’s priorities are represented.

At GTA Strategies we can provide critical support to your business during the current period of trade uncertainty by helping you navigate government grants, optimize supply chains, and develop resilient strategies. We also also offer guidance on adapting to shifting U.S. tariffs, leveraging new export opportunities, and preparing for CUSMA review outcomes. By combining practical grant application support with strategic trade planning and risk management, we can empower your business to remain competitive and secure amid evolving economic and diplomatic pressures.

We will continue to provide updates as negotiations evolve. Your resilience and adaptability are vital as Canada navigates these complex trade dynamics.