Ahead of President Joe Biden’s upcoming visit to Ottawa, tensions are mounting over the future of the Canada-United States-Mexico Agreement (CUSMA). The trilateral agreement, which replaced the North American Free Trade Agreement (NAFTA) in 2020, has been widely criticized for its failure to adequately address labor standards and environmental regulations.
Furthermore, it has been reported that the Biden administration is seeking to further modify the pact in order to ensure that Mexico adheres to its labor commitments and that it meets the US’s higher environmental standards. This could have a significant impact on Canadian trade, which has already been adversely affected by the CUSMA.
The Biden administration is also reportedly pushing for stronger enforcement measures, particularly with regard to labor and environmental standards, as well as for more transparency in the dispute settlement process. These changes could prove to be costly for Canadian businesses, who are already struggling to remain competitive in the global market.
In addition, the US is reportedly seeking to add provisions to the agreement that would allow it to impose tariffs on imports from Mexico and Canada in response to unfair trade practices. This could have a serious impact on Canadian exports, particularly in the auto and agricultural sectors.
Discussions between the US and Canada are ongoing, and it remains to be seen what changes, if any, will be made to the CUSMA ahead of Biden’s visit to Ottawa. In the meantime, tensions are continuing to mount as the two countries grapple with the implications of the US’s proposed changes to the agreement.