Canada Awaits Prime Minister Carney's Promised Enhanced CUSMA Trade Deal

Canadians are still waiting for Prime Minister Mark Carney to fulfill his October claim that he will secure a new deal under the Canada-U.S.-Mexico Agreement (CUSMA), one that he promises will be "an even better deal" than the current arrangement. With the scheduled review of CUSMA set to conclude by July 1, 2026, the nation is left wondering about the status of these negotiations.

Uncertainty Surrounds CUSMA Review Deadline

As the July 1 deadline draws near, there is a notable lack of clarity on where things stand with CUSMA. Carney has previously described the existing agreement as providing "the best deal with the Americans" compared to any other country, with over 85% of Canada-U.S. trade remaining tariff-free. This raises a critical question: how will his proposed new deal improve upon this already favorable framework?

In response to the uncertainty, Carney has introduced a 10-year plan aimed at doubling Canada's non-U.S. exports to reduce reliance on the United States, which currently accounts for 75% of Canada's trade. This strategy follows his speech at the World Economic Forum in Davos, where he urged "middle powers" to form new alliances in light of U.S. President Donald Trump's disregard for the rules-based international order.

Reality Check on Trade Diversification Efforts

Despite these initiatives, a reality check is necessary. Key points include:

The United States will remain Canada's dominant trading partner for the foreseeable future.
Canada already had numerous trade agreements with countries other than the U.S. before Carney took office.
The notion that adding a few more deals over the next decade will fundamentally alter trade diversification is unrealistic.

While pursuing new trade agreements is not inherently flawed, it does not address the immediate and pressing issue of trade relations with the United States. Notably, during the onset of Trump's trade and tariff war, only China and Canada opted for retaliatory tariffs, whereas many of the "middle powers" Carney referenced have since secured trade deals with the U.S.

Call for Transparency and Explanation

It is time for Prime Minister Carney to provide a clear explanation of why his approach is superior and how it will lead to an enhanced CUSMA. The current agreement can be canceled by Trump with just six months of written notice, adding urgency to the situation. Canadians deserve transparency on how Carney plans to navigate these complexities and deliver on his promise of a better deal.