Canada launching consultations in advance of CUSMA trade pact review, LeBlanc says

Prime Minister Mark Carney shakes hands with Mexican President Claudia Sheinbaum following a joint news conference at the National Palace in Mexico City on Thursday, Sep 18, 2025. THE CANADIAN PRESS/Adrian Wyld

The federal government says it is launching public consultations on the Canada-United States-Mexico Agreement, or CUSMA, ahead of next year’s planned review of the North American trade pact.

Canada-U.S. Trade Minister Dominic LeBlanc announced the consultations Friday in Mexico City, where he and Prime Minister Mark Carney were wrapping up two days of meetings with Mexican officials.

Ottawa will hear from provinces, territories, industry and workers through the consultations as it gears up to formally review CUSMA in 2026.

“You’ll see, over the coming weeks, activities and opportunities for Canadians, and for those that are affected by the recent turbulence in the trading relationship, to offer us views on how we should approach the review conversations with the United States and with Mexico,” LeBlanc said.

An exemption for CUSMA-compliant goods has so far shielded much of Canada’s trade from U.S. President Donald Trump’s tariff war, although sectoral duties still exist in the steel, aluminum, automotive and softwood lumber industries.

U.S. Ambassador to Canada Pete Hoekstra said earlier this week that Trump had hoped to reach a “much bigger deal” with Canada that would go beyond renegotiating the current free trade pact.

LeBlanc said that while Ottawa would sign a “bigger deal” with the U.S. if Washington offered something in Canada’s interests, his short-term focus is on addressing the sectoral tariffs. He said he expects to be back in Washington for further trade talks in the next few weeks.

Hoekstra was asked during a “fireside chat” in Fredericton about his opinion on how the two countries could get over the “speed bump” they have hit.

“I may have opinions, my real opinions on dealing with the speed bump, I couldn’t say in public,” Hoekstra replied. 

“We hope that the Canadian government comes down on the side of saying, if this is a great relationship, yeah, we’re committed to moving along a path that builds off of what we’ve done for the last 30 years ... we also recognize that as a sovereign country, Canada may decide to go a different direction. That’s a Canadian decision, not ours.”

Moving forward, Hoekstra said Trump has made it clear the Republican Party is embracing tariffs, and they will be part of its future. He said the “good news” is that Canada has “the lowest tariff rate of any country in the world.”

If Canada thinks of the United States as an “unreliable partner” and is “mad” at it then both countries should look at doing business elsewhere, he said.

Carney announced a new economic and security agreement on Wednesday with Mexican President Claudia Sheinbaum.

The agreement was billed as a comprehensive strategic partnership. It includes plans to build infrastructure, such as ports, rail and energy corridors, while tackling crime and protecting the environment.

Carney and Sheinbaum emphasized that the new deal will “complement” CUSMA.

The prime minister said Wednesday he’s confident the two countries’ individual reviews and collective discussions on CUSMA will “reinforce the strength of our economies, our individual economies, and the fact that we are stronger together.”

Carney visited the Canadian Pacific Kansas City Ferrovalle train yard on Friday — his only scheduled event for the day — before departing Mexico City for Ottawa.

— With files from Craig Lord in Ottawa and Hina Alam in Fredericton

This report by The Canadian Press was first published Sept. 19, 2025.