Former Canadian ambassador to the United States, Kirsten Hillman, has expressed confidence that the Canada-United States-Mexico Agreement (CUSMA) will not be scrapped, calling any such move 'phenomenally disruptive' to the economies of all three nations. In a recent interview, Hillman emphasized the importance of the trade deal, which replaced NAFTA in 2020, and noted that despite ongoing political tensions, the agreement is likely to endure.
Hillman's Perspective on CUSMA
Hillman, who served as Canada's top diplomat in Washington during the Trump administration, stated that while there have been calls from some quarters to renegotiate or even terminate CUSMA, she believes the deal is too integral to North American supply chains to be abandoned. 'Scrapping CUSMA would be phenomenally disruptive,' she said, highlighting the deep economic integration between the three countries. She added that the agreement has provided stability for businesses and workers, and any sudden change would create uncertainty.
Political Context
The comments come amid renewed debate over trade policy, with some politicians in Canada and the United States questioning the benefits of free trade. Hillman acknowledged that there are legitimate concerns about certain aspects of the deal, such as labor standards and environmental protections, but argued that these issues can be addressed through dialogue rather than dismantling the entire framework. 'It's not perfect, but it's better than the alternative,' she said.
Impact on Canada
For Canada, CUSMA is critical for key industries such as automotive, agriculture, and energy. Hillman warned that ending the agreement would harm Canadian exporters and could lead to job losses. She urged policymakers to focus on strengthening the deal rather than abandoning it. 'We need to work together to make it work for everyone,' she concluded.
The interview has sparked reactions from trade experts and politicians, with many echoing Hillman's call for caution. As the 2026 review of CUSMA approaches, her remarks serve as a reminder of the stakes involved in renegotiating North American trade relations.
