Former Canadian ambassador to the United States, Kirsten Hillman, has stated that scrapping the Canada-United States-Mexico Agreement (CUSMA) would be 'phenomenally disruptive' for all three nations. Speaking about the future of the trade deal, Hillman expressed confidence that the agreement will remain in place despite the approaching deadline for its mandatory review.
Hillman, who served as Canada's top diplomat in Washington until recently, noted that the economic integration achieved under CUSMA is too significant to unravel. She highlighted that the deal has facilitated billions of dollars in trade and supported millions of jobs across North America. 'Walking away from CUSMA would create massive uncertainty for businesses and consumers,' she said.
Review Deadline Looms
The agreement includes a clause requiring a joint review by the three countries every six years, with the first review due by July 1, 2026. Some observers have speculated that political changes in the U.S. could lead to renegotiation or even withdrawal. However, Hillman believes that the benefits of the deal outweigh any political pressures.
She pointed to recent trade data showing that trilateral trade has grown by 12% since CUSMA replaced NAFTA in 2020. 'The numbers speak for themselves,' Hillman added. 'Disrupting this framework would harm supply chains and raise costs for families.'
Potential Impacts
Hillman warned that scrapping CUSMA would have far-reaching consequences, including:
- Increased tariffs on key exports like automobiles, agriculture, and energy products
- Supply chain disruptions that could lead to shortages and higher prices
- Loss of investor confidence in the region
- Weakened North American competitiveness against other global trading blocs
She also emphasized that Canada must remain proactive in defending its interests. 'We need to work with our partners to ensure the agreement evolves to meet new challenges, such as digital trade and climate goals,' she said.
The former ambassador's comments come amid growing debate in political circles about the future of North American trade. While some politicians have called for a tougher stance, Hillman urges caution. 'Trade agreements are not static; they require constant attention and adaptation. But tearing them up is not the answer,' she concluded.
