CUSMA: Safety net not strategy

by | August 2025

Talks with the U.S. have dragged on for months, with little clarity beyond bold statements and one of the highest tariff threats Canada has faced. However, thanks to the Canada–United States–Mexico Agreement (CUSMA), the mood across the country is steadier, focused less on fear and more on building. Women are asking not just about what we might lose, but what Canada should be investing in for itself and its future.

CUSMA is a modernized trade deal that replaced the North American Free Trade Agreement (NAFTA) in 2020. It governs the flow of goods and services across North America, aiming to promote fair and reciprocal trade by setting rules around tariffs, labour standards, and environmental protections. The agreement allows most products made in Canada, the U.S., or Mexico to cross borders tariff-free, as long as they meet specific “rules of origin” requirements, meaning a certain percentage of their value must come from within the three countries.

CUSMA has quietly provided the foundation for billions in trade between Canada, the U.S., and Mexico. It covers everything from agriculture and energy to automotive manufacturing and digital services. Despite the 35 per cent tariff threat, 80–90 per cent of Canadian goods still enter the U.S. and Mexico tariff-free. It’s a vital framework, but it’s not permanent.

CUSMA includes a six-year review clause, which means in 2026 (and possibly sooner) all three countries must come back to the table to decide whether to renew or renegotiate the deal. If they don’t all agree, it will wind down. CUSMA is a safety net, but a fragile one and likely no longer a long- term trading strategy. And women across this country are thinking ahead.

They understand that trade isn’t just a policy issue, it’s a future-building issue. It affects jobs, supply chains, home prices, investment, and innovation. And it determines who holds influence over Canada’s economy.

Engaged women are calling for greater self-reliance and confidence in Canada’s own economic strengths. While the United States remains a vital and valued trading partner, there is a growing recognition of the importance of diversifying trade relationships and reducing dependence on any single market. 73 per cent of engaged women support Canada to export responsibly produced energy and goods globally, not only as an economic opportunity, but as an expression of Canada’s leadership on the world stage.

CUSMA has given Canada a measure of stability, but it’s no guarantee. Premier Ford has warned that CUSMA could be rewritten or even dismantled sooner than planned, and that uncertainty should be a wake-up call. Canadians must be their own best customer.