Time to Talk Trade: Canada Opens Public Consultations on CUSMA as North American Trade Evolves

On September 20, 2025, Global Affairs Canada launched public consultations on the Canada–United States–Mexico Agreement (CUSMA), and Canadians are now invited to share their views and submit comments until November 3, 2025.

The feedback will help inform Canada’s approach ahead of the joint review of CUSMA with the United States and Mexico, expected to launch in July 2026. This process has taken on new meaning in light of the current Canada–U.S. trade dispute and represents an important opportunity for businesses to participate directly in government decision-making.

Overview of CUSMA and the 2026 Joint Review

CUSMA came into force on July 1, 2020, replacing the North American Free Trade Agreement (NAFTA), which had been in place since January 1994. Under CUSMA, over 98% of tariff lines are eligible for preferential treatment — either duty-free or reduced tariffs — when goods meet the rules of origin. This covers over 99.9% of bilateral trade value in goods between Canada and the U.S. The review was scheduled to take place irrespective of the trade dispute with the U.S that arose earlier this year.

While CUSMA is intended to remain in effect for 16 years, the agreement requires a “joint review” by all parties six years after its entry into force. The purpose of the review is to evaluate CUSMA’s operation to date and determine whether it will be extended for another 16 years. If any party does not agree to extend the agreement, joint reviews will be held annually until an extension is agreed upon or until the agreement’s expiry in 2036. The purpose of this annual cadence is to encourage ongoing dialogue between the parties and reduce the likelihood of abrupt trade disruptions.

Topics Covered in the Public Consultation

The joint review offers an important opportunity to address key trade issues and challenges and assess the agreement’s overall effectiveness. The consultation seeks input on both the core provisions of CUSMA and related side letters covering topics such as tariffs, energy, natural resources and wine. Key topics include:

• Rules of Origin: Preferential tariff treatment depends on meeting Product-Specific Rules of Origin (PSROs) and Regional Value Content (RVC) thresholds, including whether these rules remain practical, whether certification and verification procedures are efficient, and whether the recent 2025 rule changes pose compliance challenges.
• Sensitive Sectors and Tariff Rate Quotas (TRQs): Industries such as dairy, sugar and meats remain subject to quotas, often due to their political sensitivity and significance to local economies.
• Trade Remedies and Tariffs: Recent U.S. tariffs and Canadian countermeasures show that exceptional measures can still happen. Businesses dependent on importing or exporting in North America may wish to address risk-mitigation measures and dispute procedures, including whether government supports (e.g., duty relief, remission) are sufficient.
• Sunset/Extension and Review Procedures: Businesses may wish to weigh in on the CUSMA review and extension process, including criteria for renewal and sectors likely to influence consensus.
• Digital Trade: CUSMA prohibits duties on digital products. Businesses may wish to comment on the effectiveness of the Digital Trade chapter and its implications for cross-border digital commerce.
• Non-Tariff Barriers: Non-tariff barriers, such as technical regulations, sanitary and phytosanitary standards, and customs administration, often restrict trade. Businesses may want to address whether current standards, processes and practices are inhibiting trade or working as intended.

Who Should Participate?

Canadian businesses and other stakeholders with operations in North America are strongly encouraged to participate in these consultations to have their interests considered in Canada’s response to the joint review.

Blakes is pleased to support clients who want to better understand how they can participate and how best to have their views considered.

For more information, please contact the authors or any other member of our International Trade group.