U.S. President Donald Trump’s top trade negotiator hinted Wednesday that the United States and Canada remain at odds on trade policy as the deadline for renewing the Canada-U.S.-Mexico Agreement draws closer, accusing Canada of “doubling down on globalization.”
U.S. Trade Representative Jamieson Greer raised other trade issues with Canada while testifying at the U.S. House Ways and Means Committee, including teasing a future “enforcement action” over provincial bans on U.S. alcohol.
Greer faced several questions during the hearing about how he was approaching the review of CUSMA, which requires all three countries to agree by July 1 on whether to renew, withdraw from or keep renegotiating the North American trade pact.
Greer said he was particularly focused on strengthening and broadening rules of origin that prevent third countries like China from importing subsidized goods into the North American market, where they can then cross borders tariff-free. He said Mexico has already agreed to do its part in improving those rules.
Asked if Canada has made similar commitments and is “playing by the rules,” Greer said “a little bit” in regards to steel but then pointed to Prime Minister Mark Carney’s efforts to diversify Canada’s trading relationships.
“Overall, they’ve indicated that they want to be trading more, they want to have more trade agreements with more countries,” Greer said.
“They’re doubling down on globalization when we’re trying to correct for the problems of globalization. So those are two models that don’t fit together very well.”
Greer added that “if the Canadians don’t want to have the rule of origin” on additional sectors beyond automobiles, “then we’ll have to have some other border control to make sure that we aren’t disadvantaged.”
Earlier Wednesday, Carney said “no” when asked by reporters if Canada was willing to make any additional concessions in trade talks.
“We understand what some of the – what the Americans would call trade irritants or trade issues – are. We have some on our side as well,” he said.
“It’s not a case of, the United States dictates the terms. (Once) we have a negotiation, we can come to a mutually successful outcome.”
Carney has stressed the importance of expanding trade with several other countries — including China — in order to reduce reliance on the U.S., which government figures say accounts for 75 per cent of Canada’s exports.
Other Trump administration officials, including U.S. Commerce Secretary Howard Lutnick, and experts like Michael Kovrig have criticized Carney for seeking closer ties with China in response to Trump’s tariffs and policy demands on Canada.
Lutnick said last week that Trump views CUSMA as “a bad deal” that needs to be “re-imagined.” He also criticized Canada’s position on trade as “the worst strategy every” and claimed “they suck” or leach off of the U.S. economy.
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Greer, who has previously suggested CUSMA could be replaced with separate bilateral trade deals with Canada and Mexico, has also said it’s “unlikely” an agreement will come by the July 1 deadline.
He said Wednesday that there are “load-bearing pillars” in CUSMA that are working well but added that a renegotiation is necessary in order to address U.S. concerns.
“I don’t think we want to rubber-stamp it,” he told the committee.
He also said there were opportunities to make the dispute mechanism within CUSMA more efficient, and suggested the Trump administration would make use of it.
“I think even more important than making sure the mechanism works is making sure we have the political will to actually enforce the agreement,” he said.
“Mexico and Canada have to understand that we will act if they don’t honour their commitments.”
Greer says U.S. alcohol bans may need 'enforcement action'
Later in the hearing, Greer was asked about the provincial and territorial bans on U.S. alcohol that were enacted over a year ago in response to Trump’s tariffs, which Greer has identified as a trade irritant.
Alberta and Saskatchewan lifted their bans last summer, but the others remain in place, and Greer said it’s up to those provinces and territories to lift them.
“I think we’re kind of at the end of our rope in just asking for them to do this,” he said.
“Think about it this way: there are two countries that have retaliated economically against the United States in the past year, the People’s Republic of China and Canada. So that’s kind of the company that they’re running in. So my sense is there may have to be an enforcement action to deal with this issue on wine and spirits in Canada.”
He did not say what sort of action the U.S. may take.
Greer told the committee he had good relationships with his Canadian counterparts, who he did not specifically name, and has regular conversations with them about trade issues.
He mentioned ongoing frustration with Canada’s refusal to change its supply management system for the dairy industry or limits on fruit and vegetable imports from the U.S. — the latter of which he said he thought would be “an easy one for them to fix.”
Asked by Republican Rep. Claudia Tenney of New York what can be done to repair the Canada-U.S. relationship and bring Canada “back to the table,” Greer suggested it’s up to Canada to address Washington’s concerns.
“I have been pretty consistent over the past year that if we can get some changes in Canadian trade practices, it’s going to help me get over the political hump that we face here in the United States,” he said.
Neither Greer or Tenney acknowledged the tensions raised by Trump’s threats against Canada’s sovereignty and economy, or insults from other Trump administration officials.
During a separate hearing Wednesday at the U.S. Senate appropriations committee, Lutnick called Canadian bans on U.S. alcohol “insulting” and “disrespectful to America.”
“Absolutely,” Democratic Sen. Jeanne Shaheen of New Hampshire responded. “And they won’t do it because of the insults from this president and comments like yours.”
“We’re not going to get agreement (on trade issues) when we keep insulting people,” she added later. “When we have allies and partners, we should try and work with them, not insult them. And I find your rhetoric insulting.”
They didn’t learn during covid to be more independent, and they didn’t learn when Trump was trying to teach them that exact same lesson, to be more self sufficient and more independent, stop relying on other countries… I would call this tripling down ..
DJT January 29, 2020
For the first time in American history, we have replaced a disastrous trade deal that rewarded outsourcing (NAFTA) with a truly fair and reciprocal trade deal that will keep jobs, wealth, and growth right here in America. And, in a true sense, it’s also a partnership with Mexico and Canada and ourselves against the world. It’s really a trade partnership, if you look at it that way. And it’s a day of great celebration in all three countries.
@ SJ – “Negotiations happen in good faith” The americans aren’t perfect, but you should be scrutinizing the Carney Government just as much for their actions in the matter. Get over your TDS
We were close to a deal in October and then our government releases an advertisement in the U.S. about Reagan’s views on Tariffs. However, they cut out the part about Tariffs being important at times. Then they have the audacity to say it was Trumps choice to step away from negotiations and we have no idea why.
Where is our good faith in these negotiations????
Carney’s #1 election promise was that he was the guy to deal with Trump. Everyone knows Trump is hard to manage, but Carney was apparently the only one who could.
After the election…. we are told “Canada already has the best trade deal”. So what was all the fearmongering for?
“So much talk around a very simple thing. let me nutshell whats going on:”
You know not of what you speak. The goalposts move every day with the american admin. They want it all and to have no compromises. They have made that perfectly clear. Negotiations happen in good faith. There is little to none left coming from the US.
As for the rest of these comments… Typical anonymous cesspool. Sad and pathetic to read.
“Under Mark Carney, Canada’s posture toward the United States has shifted with surprising speed—less theatrical than Trump’s, but no less consequential. In April 2025, we were promised a renewed economic and security partnership. By the summer, we were told the existing deal was already the best possible outcome. Fast forward to April 2026, and suddenly our reliance on the U.S. is framed as a strategic weakness. All of this, notably, after months without meaningful engagement or negotiation.” Sylvain Charlebois.
Sylvain Charlebois is director of the Agri-Food Analytics Lab at Dalhousie University, co-host of The Food Professor Podcast and visiting scholar at McGill University.
The problem with alcohol in Canada is that half of the country is in such a state of constant intoxication that they continue to keep the Liberal Government in power, which in turn causes the other half of the country to turn to alcohol to dampen the misery and pain of living under the Liberal Government ,all while the Liberal Government’s conduct and decision making is equivalent to a ship full of drunken sailors
Somebody mentioned media doing a story on the whereabouts of Canadian booze in USA bars etc. Seems its not found there, yet the US complains we have taken theirs off the shelf.
Thing about media, it is bought and paid for and will print what it is told or lose funding. It has sold its soul for shekels.
Canadian media is complicit in the gutting of democracy and this country’s downfall into a fascist state. It is complicit in the snuffing of democracy and the federal vote. It is complicit in the floor crossing and dirty politics of the Liberals. Believe what is printed at your own peril.
All a show.
Its going to be yearly reviews to 2036 .
Media and politician look at me syndrome.
I am hoping that a reporter will do a story about Canadian liquor sold in America. The U.S. is complaining about Canada not selling their booze. But every time I have visited Washington State I have never been able to find Canadian wine, beer, or booze. Such a double standard don’t you think. (not that I would ever drink their liquor or even visit the States again). But it’s a two way street so should be a two way story.
Whatever happened to the promise that Carney made to make Canada self reliant and not needing to rely on other countries for the things we need.
Who wants to trade with the USA when they have those type of attitudes? USAis only looking out for themselves and they will now step on anyone that gets in their way. Not the correct attitude if you want to be allies.
I’ve avoided buying American products at all costs since Trump was elected. We need to double-down on trade agreements with reliable partners: the USA is basically Russia at this point.
fss
Sometimes it seems as though the trade representatives in the USA are on another planet. I live in Ontario. I will never buy USA alcohol again. I purposely won’t buy US products and produce. And although I loved travelling the USA I will not ever anytime soon ,most especially while this administration is in power, travel there again! Is that clear enough Mr Greer?
It is too bad people like whysomuchtalk do not understand why Canada has a dairy quota. It is to to keep Quebec dairy farmers rich, it is to keep them in business. The US wants to dump their excess dairy into Canada. That would be great for a while, but when the Canadian dairy business fail, then the US dairy goes up. – something like Walmart. Come in, price low, all other businesses fold, then you have to buy from Walmart. – bad for Canadian business – like SAAN, Eatons, the Bay, Zellers – all gone.
The only way the US wants a trade deal with Canada is if they get everything their way. They Canada has trad irritants 😭😭😭 got have it your way. Just think about how irritating the US is to the entire world at the moment.
Can the United States make up their mind? Breaks trade agreements, puts tariffs on us, and so logically we looked elsewhere for trade. I think everyone is confused. It’s like the US administration’s policy on Iran. Changes hourly!
So much talk around a very simple thing. let me nutshell whats going on:
USA has 2 sticking points: Booze and supply management
After that the review starts it will likely be simple and straight forward, its supposed to be a review of the old agreement before everyone resigns it. There will be some dickering over % of this or that nothing major, and most likely some agreement on China/EVs to keep canada from acting as a back door (Fair imo).
Carney can’t/won’t negotiate because rich Quebec dairy farmers rely on supply management to stay rich and keep the price of milk very high in Canada. This matters because the only real swing state in Canada is Quebec with Bloc/Lib seats, he needs those seats, he also needs to appease the old money in Quebec that backs the liberal party and funds its campaigns. Same reason he can’t drop the gun buy back program, Quebec seats.
Take steel, aluminum and lumber tariffs off then we can talk.