Good afternoon.
As we get closer to the official review date of July 1, 2026, Canada must be careful to differentiate signal from noise, because the noise will only get louder and the pressure to get a deal will only increase. Public positioning and efforts to build negotiating leverage are to be expected by each of the three parties.
During this time, we will need to trust Team Canada and our expert negotiators to do their jobs behind closed doors. It will be appropriate for some information to be shared in public, but not all, and that's okay.
Moreover, it's important to remember these key facts. Canada still has the best deal in the world with the United States, whereby approximately 85% of its goods are being traded tariff-free. Contrary to frequent misconceptions, CUSMA does not expire or sunset on July 1, 2026, if no agreement is reached between the three parties. While our economies understandably seek certainty as quickly as possible, the runway to renewing this important agreement is in reality longer than a few weeks.
Based on Ambassador Greer's public remarks, we expect the United States will opt to start an annual review, which could last up to 10 years. While this scenario isn't as desirable as a quick rubber-stamping, it does mean the agreement continues to be in force until at least 2036.
What's urgent in the immediate term is for Canadian firms impacted by section 232 tariffs, those in the aluminum, steel, copper, softwood lumber and auto parts sectors, to see relief. We urge the Canadian government to prioritize their removal or reduction. We note that the recent changes to 232 derivatives are especially problematic for not only the originally impacted sectors but now also the downstream firms.
While 232s are not officially part of the CUSMA review, there's ample reason to believe that such actions are intertwined. However, Canada cannot wait for the CUSMA review to play out to resolve this issue.
Moreover, the Canadian Chamber of Commerce maintains that, during its pursuit of a renewed CUSMA, Canada must in parallel continue to implement a variety of strategic measures to diversify our nation's trade globally.
We do not believe that the two are mutually exclusive.
The Canadian Chamber is undertaking a number of initiatives to support this national priority of trade diversification, including leading missions to target markets such as Mexico, the EU and Japan, advocating for increased export support for SMEs and tangibly enhancing its collaborations with Canadian chambers and other local business partners abroad.
We look forward to continuing to engage with this committee on CUSMA and other trade matters.
Thank you.