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Sunday, July 05, 2026

Canadians Rip Carney for ‘Pouring Fuel on the Flames of the Climate Emergency’ With Pipeline Push

“This country needs an alternative to the Liberal-Conservative consensus that is doubling down on a future of climate-wrecking corporate welfare,” said New Democratic Party Leader Avi Lewis.



Canadian Prime Minister Mark Carney speaks during a news conference at the National Press Theatre in Ottawa, Canada on June 25, 2026.
(Photo by Dave Chan/AFP via Getty Images)

Jessica Corbett
Jul 03, 2026
COMMON DREAMS

On the heels of young Canadians suing over Prime Minister Mark Carney’s climate “failure” and people across the country mobilizing to urge the government to “stop fast-tracking destruction,” the Liberal leader on Thursday made a pair of fossil fuel-related announcements that sparked fresh anger.

Carney and Alberta Premier Danielle Smith of the United Conservative Party announced that the province is partnering with the federally owned Trans Mountain Corporation and Calgary-based Pembina Pipeline Corporation for a proposed tar sands pipeline that would bring more oil to British Columbia’s west coast.


Canadian Youth, Groups Sue Over Carney ‘Failure’ on Climate Crisis


“The proposed pipeline would generally follow the existing footprint of the federally owned Trans Mountain pipeline, running from Bruderheim, northeast of Edmonton, to the Roberts Bank export terminal in Delta, BC, south of Vancouver,” the Canadian Broadcasting Corporation reported. “Smith said the project would send more than 1 million barrels to Asian markets every day, reducing Canada’s reliance on the US.”

“The Alberta government’s submission to the federal government’s Major Projects Office said the project would cost between $35.2 billion and $43.7 billion, including contingencies. Construction would start as early as 2027 and finish by 2034,” CBC noted. “As for who foots the bill, Smith said detailed funding and the cost for taxpayers ‘remains to be negotiated.’”

Sounding the alarm about the plans with a Friday blog post, 350 Canada country manager Atiya Jaffar wrote, “In other words, we can get ready to expect $35-100 billion of our taxpayer dollars wasted on building this dangerous pipe dream.”

“Canada is headed in a dangerous direction. Expanding tar sands and the fracked gas industry is like pouring fuel on the flames of the climate emergency,” she argued, urging Canadians to pressure their members of Parliament to sign what the advocacy group is calling a “People’s MOU,” a jab at the memorandum of understanding the federal and Alberta governments signed last year.



Smith and Carney’s pipeline press conference came after shortly after the PM and BC Premier David Eby announced a “cooperative prosperity agreement” that the Wilderness Committee condemned as “an abandonment of both governments’ efforts to fight climate change and protect the environment,” given its provisions on the province’s liquefied natural gas (LNG) and mining endeavors.

Although Eby, a member of the New Democratic Party (NDP), “has been a prominent critic of the Carney government’s work with Alberta on pipeline plans,” Politico reported Thursday, the provincial leader cut short a trip to Beijing, where he traveled to meet with PetroChina executives about LNG production, “to be at the prime minister’s side” for the announcement.

Eby tried to stress that “this agreement doesn’t require us to support any pipeline proposal from Alberta. However, as I’ve said before, we recognize our constitutional position, and we do not have the authority to stop a new pipeline. We will not be going to court to fight a pipeline project. Instead, we will ensure we fulfill our constitutional obligations in good faith.”

“Pipelines are federal jurisdiction,” he continued. “That’s why this agreement matters. It ensures that the northern tanker ban stays in place, and it ensures that if a pipeline goes ahead, that British Columbians are fairly compensated for the environmental risks we would take on any new pipeline project.”



The Wilderness Committee’s conservation and policy campaigner Lucero González responded, “Eby said he will ensure British Columbians are compensated for the environmental damage of another pipeline, but there is no compensation for the extinction of the southern resident orcas.”

“How do you compensate for the unimaginable pain of an endangered orca like Tahlequah who has shown us her dead calves throughout the Salish Sea while each new megaproject continues to destroy their habitat?” González inquired.

Pointing to not only the potential increase in tanker traffic and oil spill risk but also the federal government’s “proposed evisceration” of the Species at Risk Act, González declared that “Carney is showing us his enthusiastic willingness to accept and fund the extinction of endangered species and a future where oil and private profit are more valuable than the entire Salish Sea ecosystem.

As Politico highlighted, the prime minister’s motivations for pushing the new pipeline include combating a separatist movement in one of the involved provinces:
The project is also aimed at easing separatist tensions in Alberta, where voters will decide in October if they want to hold a referendum to separate from Canada. Smith has blamed “10 years of bad Liberal policy” under former Prime Minister Justin Trudeau for fueling western alienation, pointing to climate rules and energy regulations she says hurt Alberta’s economy.

In a 17-minute video posted to his YouTube channel earlier this week, Carney acknowledged that his government’s energy policies will increase emissions. He argued that the climate policies championed by Trudeau had become a political wedge—and fodder for Alberta separatists.

Even before the video, advocacy organizations had partnered with a trio of young citizens in June to take legal action over the prime minister failing to bring Canada’s 2030 emissions reduction plan into compliance with a key federal law.

Julia Levin of Environmental Defence, one of the groups behind the case, said last month that “PM Carney is betraying Canadians by taking a wrecking ball to our hard-fought climate progress. It is Canadians who are paying the price through wildfires, heat domes, rising food insecurity and high costs of living.”



The Wilderness Committee’s associate director, Torrance Coste, similarly said Friday that “at a time when people across the country are suffering in extreme heat, wildfire evacuations, and devastating floods, pursuing the expansion of Canada’s most polluting industry is utterly despicable.”

“In the fight against climate change, Prime Minister Carney and Premier Eby are issuing their surrender, and resigning us to a future of ecological and economic decline,” Coste added.



While Eby flew home to be by the prime minister’s side for Thursday’s first announcement, the NDP’s recently elected national leader, Avi Lewis, delivered a scathing rebuke of a federal government that he said “will protect above all else: the profits of Big Oil.”

“As we mark the five-year anniversary of a heat dome that killed 619 people in British Columbia—and as many communities across the country are facing extreme weather right now—Canadians deserve leadership that protects us,” Lewis argued on social media. “Instead, this government is doubling down on yesterday’s failed solutions and dragging us into further danger, risk, and insecurity.”

The pipeline’s “opaque and confusing public-private partnership ownership structure means it’s very likely that we, the public, will not only bear the risks and the damages, but also the lion’s share of the costs,” he warned. “Canada’s New Democrats unequivocally oppose this pipeline proposal. If anything, this is a pipeline to the courts. It ignores the federal government’s legal responsibility to meaningfully consult Indigenous nations, including Treaty 8 nations in Alberta, threatens endangered species, and accelerates climate change. It will sow the very divisions the prime minister claims he wants to avoid.”

“We do not achieve unity or prosperity from projects that pit communities against one another, all while a handful of oil and gas CEOs walk away with enormous profits,” he continued. “While we’re stuck fighting yesterday’s battles over pipelines, and the prime minister openly admits that our emissions will rise, the rest of the world is racing ahead on renewables. We cannot afford to fall behind while other countries build the industries of the future. ”

According to the NDP leader: “Canadians deserve better than being told our only choice is another fight over another pipeline. This country needs an alternative to the Liberal-Conservative consensus that is doubling down on a future of climate-wrecking corporate welfare.”

“New Democrats are ready to build something bigger, safer, and better—a Canada that is a renewable energy superpower, with an east-west clean electricity grid and good green jobs in every region,” he concluded. “Lower costs for families with home retrofits and heat pumps for all. Investing in the care economy as a nation-building project. That’s what it looks like to build big things that actually unite this country.”

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.

---

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)