The mandatory review of the Canada-United States-Mexico Agreement (CUSMA) officially begins on July 1, with Canadian businesses and labour organizations approaching the milestone with a mix of anxiety and cautious optimism. As negotiations enter a critical phase, Ontario Premier Doug Ford is heading to Washington for his third U.S. visit this month to meet with lawmakers and advocate for Ontario’s economic interests.
Although July 1 marks the official start of the CUSMA review process, Canadian negotiators have emphasized that it is a key checkpoint rather than a firm deadline. Under the agreement, Canada, the United States and Mexico must indicate whether they wish to renew the trade pact or begin the process of withdrawing, a process that could extend over the next decade.
Canada and Mexico have both expressed support for extending CUSMA for another 16 years. However, the United States has signalled interest in more frequent reviews, with President Donald Trump repeatedly questioning whether the agreement still benefits the U.S.
Business leaders and labour groups say maintaining stability in North American trade is essential after 18 months of economic uncertainty caused by U.S. tariffs on sectors including automobiles, steel, aluminum and forestry.
Unifor National President Lana Payne urged Canada to remain firm during negotiations, saying the country anticipated this stage of the process and should not give in to pressure. She argued that recent economic challenges in the United States, including rising costs and weakening consumer confidence, have reinforced the importance of Canadian resources such as critical minerals, potash and energy.
Payne also stressed that protecting Canada’s automotive industry must remain a top priority, warning that workers have already borne much of the economic impact from prolonged trade tensions.
The Ontario Chamber of Commerce echoed the need for stability, emphasizing that July 1 should be viewed as an important milestone rather than a deadline. The organization said businesses are looking for a renewed agreement that is stable, rules-based and trilateral, while calling for continuity rather than a complete overhaul of CUSMA.
Manufacturers have also highlighted the economic consequences of the trade dispute. Dennis Darby, President and CEO of Canadian Manufacturers and Exporters, said tariffs have reduced exports to the United States and discouraged companies on both sides of the border from making major investments. He argued that businesses are delaying expansion plans until greater trade certainty returns and urged the removal of tariffs before substantive CUSMA negotiations move forward.
Small businesses continue to face similar challenges. The Canadian Federation of Independent Business says many independent companies have been forced to adapt by seeking new export markets and restructuring operations to cope with ongoing uncertainty. While many businesses have adjusted, the organization says the prolonged trade dispute has required difficult financial decisions and continues to weigh heavily on Canada’s business community.
As formal CUSMA discussions begin, business groups, manufacturers and labour leaders agree that restoring certainty, eliminating tariffs and preserving a stable North American trading relationship will be essential priorities for Canada’s negotiators.
