A pivotal hearing in Washington regarding the fate of Canada’s trilateral trade pact with the U.S. and Mexico began on Wednesday with various U.S. agriculture, business, and policy organizations advocating for the preservation of the agreement. The hearing, organized by the Office of the U.S. Trade Representative (USTR), serves as a key element in the government’s public consultation on whether to extend, renegotiate, or withdraw from the Canada-U.S.-Mexico Agreement (CUSMA) by 2026.
During the hearing, numerous speakers stressed the importance of extending the agreement, highlighting how its provisions for free trade have enabled their respective industries to enhance revenues by tapping into the Canadian and Mexican markets. Concerns were raised about the potential jeopardy posed to this beneficial access by the tariff-driven trade disputes initiated by U.S. President Donald Trump.
Dave Walton, the secretary of the American Soybean Association, expressed disapproval of Trump’s imposition of tariffs on Canadian and Mexican exports, particularly on industrial goods like steel, aluminum, and automotive parts. Walton cautioned that such tariffs could escalate into retaliatory measures that would severely impact U.S. soybean farmers, emphasizing the critical nature of renewing the trade deal, also known as USMCA.
Riley Bushue, the vice president of the Northwest Horticultural Council representing major U.S. fruit growers, voiced concerns about the detrimental effects of retaliatory tariffs imposed by Mexico during the earlier trade conflicts instigated by Trump. He highlighted the significant economic risks faced by American tree-fruit farms if preferential market access to Mexico and Canada is lost.
The testimony given at the hearing is expected to influence the Trump administration’s decision on the future of CUSMA, scheduled for review by July 1, 2026. According to federal regulations, the USTR is required to submit its recommendation to Congress by January 2 on whether to extend the trade agreement or pursue alternative actions.
Amidst the discussions on the agreement, a reporter queried Trump on his stance regarding its renegotiation. Trump responded at the White House, indicating a possibility of allowing the agreement to lapse or exploring new terms with Mexico and Canada, citing concerns about how these countries have benefited at the expense of the United States.
Nearly 150 individuals are slated to present their perspectives during the three-day hearing, categorized by industry sectors. Wednesday’s discussions primarily featured U.S. agricultural producers, as well as representatives from the clothing, pharmaceutical sectors, and various trade policy experts. Key industry players, including almond producers, berry growers, and corn farmers, advocated for the continuation of the trade pact.
Raquel Espinoza, chairwoman of the Fresh Produce Association of the Americas, emphasized the importance of maintaining tariff-free trade relations with Canada and Mexico to benefit American consumers and agricultural exports. Alicia Rockwell, the chief government affairs officer for Blue Diamond, a prominent almond producer, underscored the critical role of Canada and Mexico as essential markets for the almond industry’s sustainability.
While many sectors supported the extension of the trade deal, some raised concerns about its implementation, with particular scrutiny directed towards Mexico. Avocado growers highlighted inadequacies in the inspection of Mexican avocado imports, citing pest risks, and called for quotas to regulate tariff-free avocado imports. Florida’s fruit and vegetable growers alleged that Mexican government subsidies were undermining their businesses and urged for tariffs on imports exceeding specified quotas.
Teddy Koukoulis, chair of the North American Blueberry Council, commended the surge in U.S. blueberry exports to Canada facilitated by the agreement but raised apprehensions about Mexico’s oversight of labor standards. Criticism was also directed at Canada’s agricultural practices, notably its protectionist policies in the dairy sector, which were deemed challenging for U.S. dairy trade.
Industry leaders and policy experts stressed the importance of preserving the beneficial aspects of CUSMA while addressing compliance issues within the agreement. Calls were made for stricter enforcement of trade commitments and regulations to ensure fair competition and market access for all stakeholders. Additionally, proposals were put forth by various sectors, including mandatory country of origin labeling for beef producers and the inclusion of geographical designations for distilled spirits to protect regional products like American bourbon, Canadian rye, and Mexican tequila and mescal.
