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Canada launches public consultations on USMCA

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  Published in Media and Entertainment on Friday, September 19th 2025 at 18:50 GMT by reuters.com
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Canada Opens Public Consultations as It Re‑shapes USMCA Negotiations

In a move that underscores the importance of stakeholder input in modern trade policy, Canada’s federal government announced on September 19, 2025 that it will launch a series of public consultations as it prepares to renegotiate the United States‑Mexico‑Canada Agreement (USMCA). The consultations will run for 30 days and will invite Canadians—including businesses, industry associations, provincial governments, and consumer groups—to share their perspectives on the issues that will shape Canada’s negotiating position with the United States and Mexico.

The decision follows a complex series of trade talks that began in early 2023, when the United States signaled its intent to push for broader changes to the agreement that had first taken effect in 2020. While the USMCA replaced the 1994 North American Free Trade Agreement (NAFTA), the new deal was never fully ratified by all three parties. Instead, it was a transitional accord that left many core policy points unresolved, prompting each country to pursue its own negotiations.

Canada’s trade minister, Chrystia Freeland, described the consultations as part of a “new paradigm for trade negotiation” that values transparency and public participation. “The Canada–United States relationship is the world’s largest bilateral trade partnership, and it’s vital that we shape our position based on the needs and priorities of Canadians at all levels,” she said in a statement released by the Department of Global Affairs. “This consultation portal gives every stakeholder an opportunity to voice concerns and suggestions that will inform our negotiating team.”

The consultation portal is set to cover a range of key policy areas that have been identified as priority focus points for the upcoming negotiations:

1. Agriculture and Food Trade – The United States has repeatedly raised concerns over Canadian dairy quotas and access to certain agricultural products. Canada seeks to preserve its market share in key sectors such as pork, poultry, and dairy while also exploring ways to modernise its agricultural standards to meet American demands.

2. Automotive Rules of Origin – The USMCA includes a 75 % rule of origin for cars that allows a vehicle to qualify for tariff‑free status. Canada’s auto industry is lobbying for adjustments that reflect the rise of electric vehicle manufacturing and the need for greater flexibility in sourcing.

3. Digital Trade and E‑commerce – The agreement was expected to contain provisions on cross‑border data flows and digital services, yet the parties remain at odds over jurisdictional matters and consumer privacy. Canadian tech firms are keen to secure a level playing field that encourages innovation without compromising privacy safeguards.

4. Intellectual Property and Technology Transfer – Canadian universities and research institutions are wary of forced technology transfer provisions that could undermine their ability to protect intellectual property while also seeking pathways to collaborate with U.S. partners on emerging technologies such as AI and quantum computing.

5. Environmental and Labor Standards – Both Canada and the U.S. have recently bolstered their climate commitments. Canada’s consultation asks whether to include stronger climate‑action language and enforceable labor standards, especially for the manufacturing sector.

6. Dispute‑Resolution Mechanisms – The current agreement’s dispute‑resolution process has faced criticism for its length and costs. The public consultation will gauge public opinion on whether a streamlined mechanism is needed to reduce the burden on small and medium‑sized enterprises.

The launch of the public consultation portal is linked to a broader strategy outlined in Canada’s “Trade and Investment Policy Framework” that was released last year. That framework, which was itself the subject of a public consultation, sought to modernise trade policy to reflect the changing economic landscape, particularly in light of technological innovation, shifting supply chains, and new trade partnerships outside the US and Mexico.

“Trade policy must evolve alongside Canada’s economic reality,” Freeland said. “The public consultation portal is a tangible way to integrate the voices of those most affected by trade agreements—small businesses, regional governments, and civil society—into the negotiation process.”

The consultation will be open from September 19 to October 19, with a dedicated online portal that will allow participants to submit written comments, participate in live virtual workshops, and access background documents. The government has set out a timeline: the first round of consultations will be completed by the end of October, with a second round of stakeholder feedback scheduled for early November. The final negotiation package will be submitted to the Canadian Cabinet in December for a decision on whether to proceed to the negotiation table with the United States and Mexico.

Industry observers are watching closely. The Canadian Chamber of Commerce has called the consultation “a significant step toward inclusive trade policy,” while the Canadian Federation of Independent Business (CFIB) has warned that smaller exporters may face challenges unless their concerns are adequately addressed. A representative of the CFIB said, “If the consultations fail to capture the realities of SMEs, we risk a new trade agreement that is no longer aligned with the needs of our small businesses.”

Beyond the domestic sphere, U.S. trade officials have also signaled that they welcome Canadian public input. A spokesperson from the U.S. Department of Commerce noted that the United States is open to “constructive dialogue” that could reduce trade frictions and create new opportunities for American exporters, particularly in the areas of technology and clean energy.

The launch of the consultation portal comes as the United States has indicated a desire to revisit critical aspects of the USMCA. President Biden’s administration has highlighted the importance of ensuring the agreement reflects the current economic landscape, citing the need for “fair competition” and a “level playing field” for American and Canadian businesses alike. Meanwhile, Mexico has also expressed interest in a more balanced trade relationship that acknowledges its role in the supply chain for U.S. manufacturing.

In sum, Canada’s public consultation initiative reflects an evolving model of trade negotiation that seeks to align the country’s international trade commitments with the priorities of its citizens and businesses. Whether the consultations will lead to substantive changes in Canada’s negotiating position remains to be seen, but the process itself signals a growing recognition that trade agreements are not just diplomatic documents—they are instruments that shape the everyday lives of Canadians. As the country moves forward, the voice of the public will likely play an increasingly decisive role in determining the terms of the next iteration of the USMCA.