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Friday, July 10, 2026

Meta bets $13 billion on Alberta with first Canadian data centre



Nate Glubish, Alberta’s minister of technology and innovation (left), and Alberta Premier Danielle Smith speak to press following the announcement on July 8, 2026. — Photo by Jennifer Friesen, Digital Journal

Meta is building its first Canadian data centre in Alberta, a campus worth more than $13 billion that the province calls one of the largest private investments in Canadian history and Meta’s biggest anywhere outside the United States.

Alberta Premier Danielle Smith announced the project at a news conference in Calgary on Wednesday, midway through the Stampede, alongside two ministers, the mayor of Sturgeon County and Meta’s data centre chief.

The 2.9-million-square-foot facility will sit on 1,750 acres in Sturgeon County, inside Alberta’s Industrial Heartland. It will be powered in part by the Greenlight Electricity Centre, the $4.6-billion natural gas plant that Pembina Pipeline, Morgan Stanley Infrastructure Partners and Kineticor announced last week.

The province says the campus will create more than 3,000 construction jobs and 300 permanent ones, and return about $250 million a year to Albertans through royalties, taxes, levies and fees. Meta is putting roughly $60 million into local roads and water infrastructure.

Alberta Minister of Technology and Innovation Nate Glubish, speaks at The Princeton in Calgary on July 8, 2026. — Photo by Jennifer Friesen, Digital Journal
Alberta Minister of Technology and Innovation Nate Glubish, speaks at The Princeton in Calgary on July 8, 2026. — Photo by Jennifer Friesen, Digital Journal

Alberta courted Meta for two years and closed the deal without incentives

The first phase draws 970 megawatts of electricity, enough to power a mid-sized city. The campus is designed to grow to 1,800 megawatts, more than the city of Edmonton uses at peak.

The co-located Greenlight plant is what lets the site reach that ceiling without drawing more from the public grid. Under Alberta’s rules, Meta pays for the new power generation and the grid upgrades its own connection requires, rather than passing those costs to other customers.

The province says that arrangement will lower bills for everyone else.

“In this case, in this project, Albertans could see a reduction of up to 6% on the transmission portion of their utility bill,” said RJ Sigurdson, Alberta’s minister of affordability and utilities.

RJ Sigurdson, Alberta minister of affordability and utilities. — Photo by Jennifer Friesen, Digital Journal
RJ Sigurdson, Alberta minister of affordability and utilities. — Photo by Jennifer Friesen, Digital Journal

Every Albertan who uses electricity pays a share of the cost of building and maintaining the province’s high-voltage grid, the network of transmission lines that moves power across long distances. On a power bill, that cost is the transmission charge and the total is roughly fixed, so it gets divided among everyone connected to the system. 

Sigurdson said that when a customer as large as Meta joins the grid and takes on a big portion of that cost, the amount left for households and businesses to cover shrinks, which is where the 6% reduction comes from.

“Without this grid connected pathway, Alberta may not have landed this massive new tenant,” he said.

Meta's Gary Demasi speaks to press in Calgary. — Photo by Jennifer Friesen, Digital Journal
Meta’s Gary Demasi speaks to press in Calgary. — Photo by Jennifer Friesen, Digital Journal

Nate Glubish, minister of technology and innovation, said he first met Meta’s data centre team two years ago at the company’s Silicon Valley headquarters, where Alberta was not yet on its list of places to build.

The province’s answer was a system it calls the concierge, a single provincial contact that walks a company through the electricity regulator, the grid operator, the utilities commission and the municipality at once instead of leaving it to file with each separately. Glubish said that team is now working with about 60 more projects, several of them at the gigawatt scale of the Meta campus.

Glubish said the province used no grants, tax credits or incentives to attract Meta, and that Alberta instead wrote a levy so data centres pay a share back to the public. He said Meta spent two years and hundreds of millions of dollars on engineering, permitting and consultation before the announcement.

Nate Glubish is Alberta's minister of technology and innovation. — Photo by Jennifer Friesen, Digital Journal
Nate Glubish is Alberta’s minister of technology and innovation. — Photo by Jennifer Friesen, Digital Journal

He also drew a line between Meta and projects that have failed in Alberta. Regulators rejected the Synapse proposal near Olds, and Rocky View County council turned down a separate campus after a hearing that ran most of a day.

“Meta is the customer, they are the user, they are the engineer, they are the designer, they are the builder, they are the operator,” Glubish said. “Whereas the proposed project in Olds is a developer who has an idea and believes that if they build it, someone will come and buy it.”

Smith repeated the pitch Alberta has been making for more than a year: affordable electricity, flexible power generation, a cool climate that eases the job of cooling servers, a skilled workforce and homegrown AI expertise.

“Artificial intelligence is transforming the global economy, and Alberta is making sure we lead rather than follow,” said Premier Danielle Smith. “We created the right conditions to attract world-leading investments while protecting the interests of Albertans.”

Alberta Premier Danielle Smith speaks at The Princeton in Calgary on July 8, 2026. — Photo by Jennifer Friesen, Digital Journal
Alberta Premier Danielle Smith speaks at The Princeton in Calgary on July 8, 2026. — Photo by Jennifer Friesen, Digital Journal

Meta’s pledges, and its record elsewhere

Water has been a flashpoint in Alberta’s data centre fights. The servers that fill these buildings run hot, and many centres cool them by evaporating large volumes of water, pulling from the same supply households and farms rely on.

Meta led with water for that reason.

The company said its Sturgeon campus, which does not have a completion date yet, will use a closed-loop liquid cooling system with dry cooling, which recirculates a fixed volume of liquid instead of constantly drawing new water, and needs no operational water for cooling. On-site water is limited to washrooms, fire protection and equipment maintenance.

“The water that’s used by this data centre, it’s less than a typical golf course in Alberta over the course of a year,” said Gary Demasi, vice-president of data centre strategy and development at Meta.

Gary Demasi is the vice-president of data centre strategy and development at Meta. — Photo by Jennifer Friesen, Digital Journal
Gary Demasi is the vice-president of data centre strategy and development at Meta. — Photo by Jennifer Friesen, Digital Journal

Meta committed to being water positive by 2030, meaning the company will fund restoration and conservation work that returns more water to local watersheds than the site consumes. Its first step in Alberta is a partnership with the conservation group ALUS and local farmers to protect 200 acres of grassland, trees and wetland in the North Saskatchewan River watershed, land that stores and filters water for the basin.

“We look forward to putting down roots in this community and building a strong and positive partnership for many years to come,” he said.

Meta has made versions of that promise where it has built before, and the record is mixed. 

In Richland Parish, Louisiana, the site of Meta’s Hyperion campus, the company secured the land through a shell company and pushed state tax legislation forward under non-disclosure agreements before the public knew it was involved, according to a Bloomberg investigation. After regulators approved the gas plants built to power the campus, consumer and environmental groups asked the state to investigate whether ratepayers would be left exposed if Meta walked away.

In Alberta, the rules came first. 

The province set its data centre requirements before opening the door to investment, making projects bring their own power and pay for their own infrastructure, and the county zoned and reviewed the Sturgeon site before the announcement, so Meta is funding its own power and grid work rather than leaving costs to other ratepayers.

The site also sits inside a zone set aside for heavy industry decades ago, with buffer zones between the plants and homes and no farmland or housing on the land itself. Sturgeon County Mayor, Alanna Hnatiw, said the county held the project to its controls on power, water and land use.

Meta said it will offset the campus’s electricity use by paying for an equal amount of clean power to be added to the grid elsewhere, a common industry practice, though the electricity that actually runs the site comes largely from natural gas.

Alanna Hnatiw, Mayor of Sturgeon County. — Photo by Jennifer Friesen, Digital Journal
Alanna Hnatiw, Mayor of Sturgeon County. — Photo by Jennifer Friesen, Digital Journal

The country’s biggest AI campus

Smith said the facility will power Meta’s own technologies, including Facebook, Messenger, Instagram, WhatsApp and its AI products. 

Last week Meta said it may start selling excess computing capacity to outside customers, a business it is still weighing. But no one at the announcement said whether Canadian companies would be able to buy time on the Sturgeon campus.

Data sovereignty is the deeper question, as putting the hardware on Alberta soil does not put it under Canadian control. 

The U.S. Cloud Act lets American authorities compel a U.S. company like Meta to hand over data it controls no matter where that data physically sits, so a data centre in Sturgeon County does not by itself keep what runs inside it under Canadian law.

The Government of Canada’s own cloud policy states that as long as a provider operating in Canada is subject to the laws of a foreign country, Canada will not have full sovereignty over its data. Storing data in Canada gives residency but sovereignty depends on who controls the data and which laws bind the company that holds it. 

At the press conference today, Glubish said Meta is the first of many projects the province expects, and it now has a reference customer to point to as it courts the rest.

Alberta puts $50 million behind Amii’s AI research


Cam Linke, Amii CEO, speaks at the funding announcement at Platform Calgary.
 — Photo by Jennifer Friesen, Digital Journal

Today, the province of Alberta announced a $50 million investment over five years for the Alberta Machine Intelligence Institute (Amii), home to two decades of reinforcement learning research.

Aimed at accelerating AI adoption across public services and industry, part of the plan includes leveraging the newly-established Alberta Intellectual Property Office to ensure IP is owned, protected, and commercialized in the province. 

Amii is one of Canada’s three national AI institutes, alongside Mila in Quebec and the Vector Institute in Ontario, operating under the Pan-Canadian AI Strategy. Established in 2002, it has a focus on reinforcement learning, a field in which the province is recognized as a world leader.

Alberta Premier Danielle Smith announced $50 million in funding for Amii. — Photo by Jennifer Friesen, Digital Journal

Five ministries, one investment

When a government funds something like this, it’s often one ministry writing the cheque. 

This time it’s five.

The ministries of Technology and Innovation and Advanced Education are co-leads, investing $15 million each, with Assisted Living and Social Services at $10 million. Primary and Preventative Health Services and Education and Childcare are each contributing $5 million.

“Alberta has been a leader in the AI space for decades, and the Alberta Machine Intelligence Institute… has played a major role in keeping Alberta on top,” said Alberta Premier Danielle Smith, announcing the funding at Platform Calgary. “They have worked closely with the government over the years to see how AI can be implemented into our everyday lives.”

She explained how the funding is the work of five ministries together, “because we know the significant impact that this could have on making the lives of Albertans better.”

Nate Glubish, Alberta’s minister of technology and innovation, credited Myles McDougall, Minister of Advanced Education as an equal partner on the file. 

Nate Glubish, Alberta’s Minister of Technology and Innovation, speaks at the Amii funding announcement at Platform Calgary. — Photo by Jennifer Friesen, Digital Journal

“I couldn’t have done it alone. I found some of the money in my budget, but my good friend and colleague [McDougall] here is an equal partner with me in that through his budget,” Glubish said. 

Glubish also pointed to the province’s history with Amii. “Alberta began investing in AI research more than two decades ago. That early bet paid off,” he said, noting how Amii’s chief scientific advisor, Dr. Richard Sutton, was a co-recipient of the 2024 A.M. Turing Award, frequently dubbed ‘the Nobel Prize of computing.’

“This $50-million investment is a vote of confidence in that team,” Glubish added. “It will put AI to work for the people of this province: better healthcare, faster public services, and more Alberta companies solving real problems.”

McDougall said that this technology is helping modernize systems for skilled tradespeople. 

“We apply AI to apprenticeship delivery, streamlining the path to graduation, cutting the paperwork for employers, and getting Alberta’s skilled trade system ready for the workforce demand that’s coming.”

He also gave credit to Alberta’s post-secondary system.

“Our universities, colleges, and polytechnics are training the next generation, the engineers, the entrepreneurs, researchers, and skilled professionals who will lead in an AI-driven economy,” he added. “This investment backs them and strengthens an ecosystem where students can learn, researchers can lead, companies can scale right here in Alberta.” 

Myles McDougall, Alberta’s Minister of Advanced Education, speaks at the Amii funding announcement at Platform Calgary. — Photo by Jennifer Friesen, Digital Journal

Bigger than a funding announcement

Evan Solomon, Canada’s Minister of AI and Digital Innovation, was in attendance at the funding announcement, using the stage to put Alberta’s investment in a national context. 

“We have classically, as a country, been great at research, and we’ve sucked at commercialization,” he said. “Alberta has led the way to show how we have to do that better.”

Solomon cited a commercialization gap, where companies often end up relocating outside of the country, taking their talent and patents with them. 

“We are losing our best IP and brains, so we are stopping that,” he added, later tying that loss to a broader argument about sovereignty. 

“If we don’t build the infrastructure here, we’re going to have to rent it from someone else,” he said. “If we don’t build the innovation here, we’re going to have to buy it from someone else. And if we don’t make the rules here, we have to follow someone else’s.”

This funding comes the day after the news that Meta is building its first Canadian data centre in Alberta.

It also comes on the heels of a Government of Canada and the Canadian Institute for Advanced Research (CIFAR) announcement made at the Upper Bound AI Conference in Edmonton in May. Solomon announced the appointment and renewal of 42 Canada CIFAR AI Chairs, backed by a $24 million investment, all affiliated with the three national AI institutes.

Evan Solomon, Canada’s Minister of AI and Digital Innovation, speaks at the Amii funding announcement at Platform Calgary. — Photo by Jennifer Friesen, Digital Journal

Canada’s recent “AI for All” national strategy goes further, pledging to strengthen the national AI institute network and increase the Chairs program from 130 to nearly 200 researchers. He outlined an investment of $130 million into the national AI institutes, and mentioned $700 million in affordable sovereign compute for Canadian SMEs, an expansion of the Compute Access Fund.

Finally, Solomon revealed a $1.8 billion talent attraction strategy to attract 1000 of the top researchers and their labs to Canada.

“We need the talent to come to Canada,” he said. “It’s the best place to be, it’s the best place to build, and it’s the best place to start a company.”

Building on two decades of research

According to the province, Alberta’s government has invested about $100 million in Amii since 2002. Through its work under the province’s first Technology and Innovation Strategy, Amii has worked with 786 companies to adopt or advance AI, supported 318 startups, and reached 1.2 million people through its literacy programs.

The institute currently has more than 500 active researchers and 71 Amii Fellows/Canada CIFAR AI Chairs.

“We and our strategy have promised to do a free AI literacy course for every Canadian, because we believe everybody should have access to literacy, and we’re going to give an AI tool and agent to every post-secondary student in Canada for five years, free and available, because they need tools to build,” said Solomon, giving kudos to Amii CEO Cam Linke on his work with training and education.

“What’s happened here in Alberta at Amii is the model for the nation.”

The new Amii funding is meant to work against the ‘brain drain” pattern Solomon described. With the Alberta Intellectual Property Office, patents developed with public funds are kept in the province, framing the investment as a way to grow new jobs, attract private investment, and keep ideas developed in Alberta from moving elsewhere.

Photo by Jennifer Friesen, Digital Journal

Linke said the investment builds on that foundation. 

“This investment enables Amii to strengthen the foundations of Alberta’s AI ecosystem by supporting startups, accelerating AI adoption across industry and the public sector, and building the AI literacy needed to prepare the workforce of the future,” he said. 

“Together, we are ensuring Alberta remains a destination for AI talent, innovation and investment while creating lasting economic and societal benefits for Albertans.”

Healthcare is a priority

Justin Wright, minister of primary and preventative health services, said the investment is meant to support faster, better-targeted care. 

“Alberta’s primary and preventative health system depends on getting the right information to the right provider at the right time,” he said. 

“By investing in Amii, we are supporting made-in-Alberta AI solutions that can help improve screening, earlier detection, system navigation and front-line decision-making. Used responsibly, this technology can reduce administrative burden, strengthen prevention-focused care and help Albertans access timely, high-quality services closer to home.”

Linke closed the announcement by tying the funding to Amii’s origins. 

“When you look at the history of Amii, it was an ambitious thing back in 2002 for the province to invest in AI,” he said. “We’re excited for what we can do with the province,  and what we’re going to do with this announcement, not just to be the place that powers AI globally, but also the place that produces the researchers, the talent, and the startups that are going to solve the world’s biggest problems right here.”

Thursday, July 02, 2026

Trump rejects CUSMA extension. What happens next?




Published:

U.S. President Donald Trump speaks with Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum after the draw for the 2026 soccer World Cup at the Kennedy Center in Washington, Friday, Dec. 5, 2025. (Mandel Ngan/Pool Photo via AP)

OTTAWA — As expected, U.S. officials announced on Wednesday’s much-anticipated deadline that they’re opting against rubberstamping the Canada-U.S.-Mexico Agreement.

In a statement following a meeting of representatives from all three countries, U.S. Trade Representative Jamieson Greer pointed to what he called the deal’s “shortcomings,” and wrote: “The United States did not agree to renew (CUSMA) in its current form.”

So, what happens next?

Annual review process kicks in

In short, not much is changing from the perspective of the average Canadian.

Canada and the U.S. remain in a trade war that’s nearing the 18-month mark, after U.S. President Donald Trump imposed sweeping tariffs on Canadian imports last February.


While the vast majority of Canadian goods are exempt from the levies because they’re covered under CUSMA — with Canadian officials repeatedly stating Canada has “the best trade deal” in the world — a slate of sectoral tariffs remain in place.

Those are having significant impacts on the steel, aluminum, auto and lumber industries.

Wednesday’s CUSMA deadline, meanwhile, was baked into the original agreement, inked during Trump’s first term.

By July 1, officials in all three countries had to say whether they wanted to renew CUSMA for a 16-year period. Because the U.S. chose not to do so, an annual review process kicks in for the next decade.

That means weeks and likely months of negotiations ahead, led by Canada-U.S. Trade Minister Dominic LeBlanc and Canada’s chief negotiator Janice Charette.

Officials from the U.S. and Mexico already have a date set for official bilateral talks later this month, with representatives from the two countries having already met before. Canada, however, has not launched official negotiations with the United States.

Speaking to reporters on Parliament Hill last month, Prime Minister Mark Carney downplayed the significance of that, saying there’s a “series of … technical issues” the U.S. has with Mexico, which explains their more extensive bilateral discussions ahead of the July 1 deadline.

“But for us, there’s the more fundamental structural issues, as people know, which relate to the so-called strategic sectors, that’s the American term, the 232 tariffs that are on automobiles, on steel, aluminum, forest products, particularly,” Carney also said at the time. “We’re looking to determine whether there’s a possibility of a new partnership there.”

Any of the three countries are also able to pull out of the deal entirely with six months’ notice.

Despite Trump’s previous comments that he would prefer CUSMA not exist at all, saying he thinks the United States is better off without it, neither he nor his deputies have given any indication that they want to terminate it.


U.S. published list of irritants

Apart from the specific CUSMA process, U.S. officials release a list of trade irritants annually.

In April, Greer’s office released its longlist, with several pages specifically relating to Canada, and pointing to liquor, supply management, Buy Canadian procurement policies, and the Online Streaming Act, among others as sticking points.

In the weeks leading up to the July 1 deadline, Trump himself had also signalled the U.S. would not be renewing the trilateral trade deal.

Following the G7 Leaders’ Summit in France last month, Trump said he would rather leave CUSMA unsigned and have it immediately terminated, though he also said he may sign the deal.

Trump has also previously stated that the U.S. doesn’t need anything Canada has, and that “Canada lives because of the United States.”

In a broadcast exclusive interview with CTV Question Period last week, U.S. Ambassador to Canada Pete Hoekstra was pressed on Trump’s rhetoric.

“There were only two countries that responded in a strongly negative way,” Hoekstra said about Trump’s trade policy and tariffs. “The rest of the world, we’ve negotiated trade agreements. We’ve worked on frameworks, and those types of things. We did not take aim at Canada.”

More recently, Hoekstra has framed Trump’s remarks as a sign the U.S. is open to offers and has urged Canada to highlight its strengths in autos, energy, and resources.

Canada prioritizing sectoral tariffs

At various speaking engagements and reporter scrums in recent weeks, Canadian officials have repeatedly downplayed the July 1 CUSMA deadline, assuring that it’s “not a cliff.”

In a letter to his American and Mexican counterparts last month, LeBlanc stated Canada wanted to see CUSMA renewed for 16 years. In the letter, LeBlanc also laid out Canada’s priorities going forward, namely eliminating sectoral tariffs.

“Canada recognizes that either or both other parties to the agreement may wish to propose areas where improvements may be warranted to strengthen North American competitiveness,” LeBlanc wrote in his letter to Greer and Mexico’s Secretary of Economy Marcelo Ebrard, adding Canada “looks forward to continued engagement” with the U.S. and Mexico.

“In parallel, discussions with the United States on addressing sectoral tariffs will be essential,” he also wrote.

With files from CTV News’ Stephanie Ha

Spencer Van Dyk

Opens in new window

Writer & Producer, Ottawa News Bureau, CTV News

Market Outlook: CUSMA talks enter a new phase after U.S. trade decision



Published:

The United States has declined to extend CUSMA in its current form, triggering a new round of negotiations over North America’s trade framework. Although the agreement remains in force until 2036, businesses now face renewed uncertainty as Canada, the U.S. and Mexico prepare for what could be a lengthy negotiating process.

BNN Bloomberg spoke with Tom Mulcair, former leader of the New Democratic Party and CTV News political commentator, about why uncertainty may weigh on business investment, how tariff negotiations could evolve, and the political factors that could shape the outcome of talks.

Key Takeaways

  • Uncertainty surrounding future trade rules could delay major business investment decisions across North America.
  • Canada is expected to continue pushing for the removal or reduction of tariffs on steel, aluminum, automobiles and softwood lumber during negotiations.
  • Midterm elections in the United States could influence the political environment and negotiating leverage in future CUSMA talks.
  • Donald Trump is expected to use the possibility of withdrawing from CUSMA as a negotiating tactic, even if an actual withdrawal remains unlikely.
  • Any revised agreement is likely to resemble the current CUSMA framework because of the deep economic integration between Canada, the U.S. and Mexico.
Tom Mulcair, former leader of the New Democratic Party

Read the full transcript below:

LINDSAY: The Trump administration has officially declined to extend the Canada-U.S.-Mexico Agreement in its current form, triggering what could be lengthy and challenging negotiations over the future of the North American trade deal. While CUSMA remains in place until 2036, the decision introduces new uncertainty for businesses, investors and policymakers. Joining us now is former leader of the federal NDP and CTV News political commentator Tom Mulcair. It’s great to have you join us.

TOM: Good to be with you, Lindsay.


LINDSAY: So, obviously, this was widely expected, this decision, but how significant is it really today, both politically and economically?

TOM: I think you hit the nail right on the head when you talked about uncertainty because, even though we have a consolation in the fact that the deal continues in force for up to 10 years unless someone gives the six-month notice to withdraw — and we’ll talk about that at the end — it is the uncertainty that this creates. Businesses don’t make decisions, especially big ones, on an annual basis; they make them long term. If you’re not sure whether this deal, or another one, is going to be in place, you’re going to hold off. And it’s not just Canadian companies that are going to be affected by that; American companies and, of course, Mexican companies as well. So, that uncertainty in the market, that instability, is characteristic of Donald Trump. He doesn’t care about creating chaos. Chaos is his middle name. He likes this stuff. He had already said, in one sentence, as he left the G7 that he doesn’t care about the CUSMA deal. He wouldn’t mind leaving it on the table and just walking away from it, but then again, he could sign it all in one sentence. So, it’s the type of thing we’ve become used to with Trump, but it doesn’t make it any easier in a business environment.

LINDSAY: Yeah, and obviously Canada has repeatedly said its priority is eliminating tariffs on steel, aluminum, autos and softwood lumber, those sectors that have been hit so hard over the last year. I’ve heard some people say that we might just have to get used to having tariffs on those sectors. How realistic is it for Canada to be able to ease some of the strain on those areas?

TOM: I think that, long term, we’re going to see a lot of those lifted, or at least attenuated, because we have been, frankly, holding our fire. Donald Trump’s main recrimination from Day 1 was, “Oh my gosh, I looked at the numbers. There’s a trade deficit for the United States with Canada. We should have a trade surplus.” Well, guess what? That trade deficit was because we practically give him, certainly below market value, $100 billion of oil per year, and all of the refining and the value-added jobs are in the States, not in Canada. So, it would be very easy for Mark Carney to say, “You want to solve that issue, that trade deficit? We can solve it overnight.” But there is no reason to go down that road. That would be the Trumpian approach. Everything is a negotiation. Everything is a tit for tat. We’re trying to get a deal that makes sense for Canada, and Carney is right. No deal is certainly better than a bad deal. Trump would try to negotiate his way toward a bad deal for us. He has already threatened to really hurt the Canadian economy, as has Howard Lutnick, especially with the auto sector. So, we’re dealing with something unpredictable. We could have never guessed that Trump would go so far as to openly talk about absorbing Canada as the 51st state and intentionally harming our economy, but that’s what he’s been doing.

The information today that was just discussed on BNN Bloomberg about the United States economy, the softness of the job sector and the economy itself, is an indication that everybody loses. This is what Ronald Reagan said in the famous video that was played by Doug Ford in the U.S. during the baseball playoffs. Everybody loses when you play this tariff game long term. Trump saw the tariffs as a gentle rain from heaven pouring billions into the U.S. Treasury, but it’s not foreign countries paying those tariffs; it’s American consumers. That is finally starting to hit home. The American economy is being hit hard by those tariffs, by Trump’s approach. Even though it’s taken a while, I think the average American has come to understand it and might push back a little bit on Trump and make him open his eyes to the fact that open markets, especially in North America, have been a good thing for the U.S. and, of course, for its primary partners, Canada and Mexico.

LINDSAY: And I wonder, too, as you say, if U.S. voters start to notice this, the impact on the U.S. economy, particularly with the midterm elections coming up, could that be something that might help Canada when it comes to negotiations, maybe a bit of leverage there?

TOM: That’s the hinge. That’s the turning point, the midterms. Everybody’s got their own guess as to how they’re going to turn out, and the situation could change radically, for example, with Iran. But if things stay on an even keel, we can expect to see Trump really get hammered in the midterms, probably lose both majorities, and that would, of course, change the political landscape completely. Once we get past those, we’re into the home stretch of Trump’s four-year mandate as soon as we start 2027. So, I think that’s the reasoning behind this.

Carney is deeply experienced. He’s dealt with bullies before. He’s dealt with blowhards before. I just mentioned Howard Lutnick. He and Trump are just New York loudmouths, always trying to push their way through, trying to bully their way through. Reality catches up, even with bullies. At some point, the average Canadian has already realized we’re going to get a deal eventually. The Americans are not walking away from CUSMA. There’s too much interest in it for them. They’re not walking away from Canadian resources, whether it’s oil or potash that goes into every acre of every farm in the United States to produce the food Americans eat. These are things Canada has that America needs, even if Donald Trump says he doesn’t need anything that we have.


LINDSAY: Which he continuously seems to be saying. I did want to touch on something you mentioned at the beginning, which is the six-month notice to withdraw. Do you think that any party here will be exercising that, particularly the United States? Because, as you say, the U.S. is not going to walk away from Canada.

TOM: I think that will be a play by Donald Trump as this thing goes on for a few months. He’ll use that threat. It’ll be an idle threat. It’ll be an empty threat, but it’s something that we’re going to have to take seriously because, if he ever did do it, of course it would hurt the Americans as much as us because, as we just explained, they’ve been winners under CUSMA, as everybody else has.

But if he does actually withdraw, so people understand, the current deal continues for 10 years. It has to be reviewed annually, but it continues. It’s the same deal. Any of the three parties can simply give six months’ notice to the other parties, and then they’re out of the deal. So, I’m absolutely expecting Trump to try to play that card at some point along the way to try to put pressure on everyone. For him, everything’s a negotiation. Everything is bartering. Everything is trying to gain an advantage over the people you’re discussing things with. So, sure, “The Art of the Deal,” per Trump, will probably involve that six months’ notice. But again, it’ll be chaotic for the markets, for businesses. Trump’s middle name is chaos. He’s going to try to convince everybody that he’s been a big successful winner, no matter what the result is, even if it’s the same deal.

Lindsay, Trump said CUSMA was the best deal ever. He’s the one who signed it. Now he’s saying it’s a lousy deal. He brought in CUSMA because he said that NAFTA, the North American Free Trade Agreement, the precursor, was the worst deal ever in history. If you look at NAFTA and you look at CUSMA, guess what? They’re very, very similar, and in many respects identical. So, this is the pure Trump game. He wants to be able to boast that he got something out of it. We’ll see whether that actually comes to pass.

LINDSAY: And just lastly, I know you’re not an analyst or an adviser, but what do you think Canadian businesses and investors should be watching for in the coming months, just in the last 30 seconds or so?

TOM: Well, the first part is what we looked at at the beginning. I think that a lot of those businesses are going to hold big decisions. They’re just going to put themselves in a holding pattern, and they’re going to say, “We’re not going to make that massive investment south of the border, or going the other way, because there’s too much uncertainty.” So, I think that’s one of the things that we’re are going to be seeing the most, a waiting period as people try to decide whether there’s going to be a new deal.

I actually do believe that cooler heads will prevail, that there will be a good deal that will resemble a heck of a lot of CUSMA, which resembled a heck of a lot of NAFTA. But Trump, of course, has never been satisfied with anything that anybody else did. He gets to criticize that and says that he’s going to come up with something much better. We’ll see. We will see, indeed.

LINDSAY: Okay, we’ll have to leave it there. Former leader of the federal NDP and CTV News political commentator Tom Mulcair joining us live. Tom, thanks so much. Appreciate your time.

TOM: All the best, Lindsay.

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This BNN Bloomberg summary and transcript of the July 2, 2026 interview with Tom Mulcair are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.


U.S. declines CUSMA renewal, cites deal’s ‘shortcomings’




Updated:

OTTAWA — The trilateral trade deal between Canada, the United States and Mexico, known as CUSMA, will enter an annual review process, as U.S. officials opt not to extend the agreement.

“The United States did not agree to renew (CUSMA) in its current form,” wrote U.S. Trade Representative Jamieson Greer in a statement to CTV News. “As a result, (CUSMA) is not renewed.”

“The United States will continue to engage with Mexico and Canada to address the agreement’s shortcomings and our trade deficits with these countries,” Greer added. “However, the agreement remains in force pending resolution of these issues or until the agreement’s termination.”

U.S. Trade Representative Jamieson Greer. (AP Photo/Aurelien Morissard, Pool)

Representatives from all three countries met virtually on Wednesday to discuss the future of the agreement, after Prime Minister Mark Carney previously indicated he wasn’t anticipating any resolution, and U.S. President Donald Trump signalled he was unlikely to sign an extension.

Wednesday was the deadline for officials in all three countries to say whether they wanted to renew the Canada-U.S.-Mexico Agreement (CUSMA) for a 16-year period. Because the U.S. chose not to rubberstamp it, an annual review process kicks in for the next decade.

Representing Canada in the meeting were Canada-U.S. Trade Minister Dominic LeBlanc and Canada’s chief negotiator Janice Charette. Both have tried to assuage concerns about Wednesday’s deadline by repeatedly assuring that it’s “not a cliff.”

In a statement after the meeting, LeBlanc said he reiterated Canada’s preference to have CUSMA renewed. Mexican officials have also said that’s what they wanted.

Canada-U.S. Trade Minister Dominic LeBlanc makes his way to a meeting of the federal cabinet on Parliament Hill in Ottawa. THE CANADIAN PRESS/Justin Tang

“We agreed on the importance of continuing our discussions and identifying ways to ensure trade and investment frameworks between Canada, the United States and Mexico continue to support North American prosperity and competitiveness,” LeBlanc wrote in the statement. “For Canada, this includes substantive discussions with the United States on addressing sectoral tariffs on Canadian steel, aluminum, autos and lumber.”

“We look forward to further engagement with the United States and Mexico in the coming weeks and months as we work together to strengthen our shared economic prosperity,” he also wrote.

In a video statement in Spanish posted to social media on Wednesday, Mexico’s Secretary of Economy Marcelo Ebrard stressed that the agreement remains in place despite the review.

Ebrard also said he’s set to meet with U.S. officials later this month for bilateral talks to address some of their trade irritants, and that Mexican officials hope to reach some agreement soon to reduce uncertainty for industry.

On Tuesday, Carney downplayed expectations for the meeting, telling reporters in Kuujjuaq, Que. that he was “expecting a constructive exchange,” but adding he “wouldn’t expect any drama,” and he was “not looking for (his) pen.”

Trump, meanwhile, has repeatedly slammed the agreement, inked during his first term in the White House. Whether the U.S. administration planned to extend it, however, was unclear until Wednesday’s talks.

Following the G7 Leaders’ Summit in France earlier this month, Trump said he would rather leave CUSMA unsigned and have it immediately terminated, though he also signalled he may sign the deal.

Speaking at a digital event hosted by BMO earlier this week, Canada’s former chief CUSMA negotiator Steve Verheul said while there was “a possibility for it to come together,” he expects negotiations to continue beyond the U.S. midterm elections in the fall, and possibly into next year.

Steve Verheul, Canada's former chief trade negotiator. THE CANADIAN PRESS/Chris Young

“We’re looking at a very different kind of discussion than we had in President Trump’s first term,” Verheul said. “At that point we were trying to negotiate 34 chapters of an agreement, and that was a very different kind of scenario than we’re looking at now.”

“Now we’re looking at pursuing a number of bilateral irritants that the U.S. is trying to reach some kind of accommodation on,” he added. “And there’s a handful of trilateral issues that are also under consideration, but most of, if not all of, the agreement is going to remain as it is now.”

In an interview with CTV News Channel on Wednesday, former senior White House trade adviser Kelly Ann Shaw called July 1 “a boring day when it comes to the trade agenda” because of the advanced indicators Trump would not vote to extend CUSMA.

Any of the three countries are also able to pull out of the deal entirely with six months’ notice. Despite Trump’s previous comments that he would prefer CUSMA not exist at all, saying he thinks the United States is better off without it, neither he nor his deputies have given any indication that they want to terminate it.

U.S. President Donald Trump talks to media after disembarking Air Force One. (AP Photo/Julia Demaree Nikhinson)

Speaking during a fireside chat at the Hudson Institute — a Washington, D.C.-based think tank — in April, Greer compared certain provisions within CUSMA to “load-bearing pillars,” which currently function well within the agreement, and that the United States doesn’t want to change or get rid of.

“There are certainly things in there that are valuable, but we do have to have some kind of a protocol, or something with Mexico and one with Canada separately, I think, to deal with issues specific to those countries,” Greer said at the time.

Amid talks around the future of CUSMA, Canada and the U.S. remain in a trade war that’s nearly at the 18-month mark, after Trump imposed sweeping tariffs on Canadian imports last February. While the vast majority of Canadian goods are exempt from the levies because they’re covered under CUSMA, a slate of sectoral tariffs remain in place.

With files from CTV News’ Rachel Aiello and Abigail Bimman

Key U.S. complaints against Canada ahead of trade review




Published:

OTTAWA -- The U.S., Canada and Mexico are due to meet on July 1 to review a trilateral trade agreement after a period of heightened tensions between Washington and Ottawa.

The agreement, known as CUSMA, must be reviewed every six years under a deal made during U.S. President Donald Trump’s first term. Trump has been noncommittal on renewal.

As Trump threatens Canada by calling the country the 51st U.S. state, Canadians have cut back on travel and stopped buying American products. The opening of a new bridge connecting Windsor in Ontario to Detroit has been delayed.

Below are some of the issues the U.S. Trade Representative’s Office (USTR) highlighted in its 2026 National Trade Estimate report on Canada released earlier this year. A spokesperson for Canada’s minister in charge of U.S. trade declined to comment on these irritants.

Dairy and supply management

Washington has criticized Canada’s supply-managed dairy, poultry and egg sectors, saying production quotas and tariff-rate quotas limit access for U.S. exporters. Canada imposes tariffs that can exceed 200 per cent on imports above quota levels.

The U.S. has also complained about Canada’s administration of dairy import quotas created under CUSMA and raised concerns over milk pricing policies and market access for U.S. dairy products. Prime Minister Mark Carney’s government has said previously supply management will not be on the negotiating table.

Buy Canadian policies

The U.S. says Canada’s new Buy Canadian initiative gives preference to Canadian firms and domestically produced steel, aluminum and wood in major government contracts.

Washington has also objected to measures adopted by provinces including Ontario, Quebec and British Columbia that restrict or disadvantage U.S. suppliers in procurement competitions.

Wine, beer and spirits

Most Canadian provinces control alcohol distribution through government-run liquor boards, which the United States says impose barriers ranging from listing restrictions and pricing rules to distribution requirements.

The issue became even more contentious after several provinces stopped distributing U.S. alcohol products in response to Trump’s tariffs on goods from Canada from last year. Ontario Premier Doug Ford has refused to put U.S. liquor back on shelves unless tariffs are removed or a new trade deal is reached.

Digital services tax and streaming

The U.S. continues to monitor Canada’s digital services tax, which Ottawa pledged to repeal but had not formally eliminated by the end of 2025, the March report from USTR said.

Washington has also raised concerns about Canada’s Online News Act, which requires major digital platforms to compensate Canadian news organizations, and online streaming rules that require certain services to contribute to Canada’s broadcasting system.

Canada’s government has signaled it will back off plans to force entertainment companies such as Netflix to contribute to Canadian productions, saying it doesn’t want consumers to face higher costs.

Agriculture and seeds

The U.S. says Canada’s seed registration system is slow and cumbersome, limiting market access for some U.S. seed and grain exports.

Washington also continues to object to restrictions affecting imports of certain fresh fruits and vegetables.

Intellectual property

Canada remains on the U.S. Trade Representative’s Watch List for intellectual property protection.

The U.S. cites concerns about counterfeit and pirated goods, including sales at Toronto’s Pacific Mall, as well as issues related to patent protections and geographical indications.

Labour enforcement

While Canada has adopted measures intended to block imports produced with forced labour, Washington says enforcement remains insufficient and could allow such goods to enter the Canadian market.

Earlier this month, Canada introduced new legislation to strengthen the ban on importing goods produced with forced labour.

Alberta energy market

The U.S. says Alberta’s electricity market continues to disadvantage U.S. power producers.

Washington says stakeholders have complained that electricity generated in neighbouring Montana is given lower priority than equally priced power produced in Alberta, limiting access to the province’s energy market.

Pharma pricing

Washington says Canada’s Patented Medicine Prices Review Board unfairly depresses prices for innovative medicines by excluding the United States and Switzerland from the basket of countries it uses to benchmark patented drug prices.

U.S. industry argues the approach artificially reduces the value of innovative medicines in the Canadian market.

(Reporting by Promit Mukherjee; Ediitng by Caroline Stauffer and Sanjeev Miglani)