The United States has signaled growing disagreement with Canada over trade policy as the deadline to review the Canada-United States-Mexico Agreement approaches, with Washington accusing Ottawa of pursuing a strategy that conflicts with US priorities.
US Trade Representative Jamieson Greer told lawmakers during a House Ways and Means Committee hearing that Canada appears to be expanding its global trade ambitions at a time when the United States is seeking to address the downsides of globalization. He suggested that the two approaches are fundamentally misaligned.
Greer highlighted concerns over rules of origin within the North American trade framework, which are designed to prevent subsidized goods from countries such as China entering the region tariff-free. While noting that Mexico has shown willingness to strengthen these rules, he indicated that Canada’s commitments remain limited, particularly beyond the steel sector.
He warned that if Canada does not adopt stricter measures, the United States may consider alternative border controls to protect its industries. Greer also raised the possibility of enforcement action related to provincial restrictions on US alcohol imports.
The review of the trade pact requires all three member countries to decide by July 1 whether to renew, withdraw, or continue renegotiating the agreement.
Canadian Prime Minister Mark Carney, however, rejected suggestions that Ottawa would make further concessions. He maintained that trade discussions should be balanced, stressing that both sides have concerns and that outcomes must be mutually beneficial.
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