Image by pixel1 from Pixabay—https://pixabay.com/photos/canadian-wheat-golden-grain-crop-943707/. Edited by Farms.com.
The Canada–United States–Mexico Agreement (CUSMA)—known as USMCA (United States-Mexico-Canada Agreement) in the US and T-MEC (Tratado entre México, Estados Unidos y Canadá) in Mexico—is the trade pact that, on July 1, 2020, replaced NAFTA (North American Free Trade Agreement, which was signed into place on December 17, 1992).
CUSMA governs tariffs, sanitary and phytosanitary (SPS) standards, biotechnology, dispute settlement, and technical trade barriers. For Canadian agriculture, CUSMA provides predictable, science-based rules and secure access to North American markets.
Since its implementation, the North American agri-food trade has surged to nearly CDN$400 billion annually, making CUSMA a cornerstone of economic stability and food security.
However, it is currently up for renewal.
Why Most Ag Groups Want a Full Renewal
On December 8, 2025, 98 Canadian agriculture and agri-food organizations signed a letter urging Ottawa to renew CUSMA for its full 16-year term without changes that could weaken its provisions or harm agriculture.
Signatories included beef, pork, horticulture, seafood, food processors, supply-managed dairy and poultry, and equipment manufacturers.
The letter emphasized:
- Science-based SPS rules;
- Biotechnology and regulatory clarity;
- Chapter 31: dispute settlement;
- Preserving current provisions.
Ron Lemaire, President of the Canadian Produce Marketing Association (CPMA), wrote in a joint letter co-signed by nearly 100 Canadian agricultural organizations directed to the federal government, advocating for the complete renewal of CUSMA without modifications.
“The agreement’s predictable, science-based framework has helped triple North American agri-food trade to ~$400B CAD and supports food security and rural communities,” said Lemaire.
Keith Currie, President of the Canadian Federation of Agriculture, added, “We feel the current agreement is a good one, and we’d like to see it continue as is,” while stressing its contribution “to maintain the agreement’s SPS provisions.”
But Why Didn’t Grain Groups Sign On?
Grain, oilseed, and pulse organizations support CUSMA’s core principles, but they declined to sign the letter because of its rigid “no changes” language.
They fear this could lock in protections for supply-managed sectors—dairy, poultry, and eggs—making future reforms impossible.
For export-driven grain producers, flexibility is critical. They want:
- Room for future negotiations to improve market access and harmonize regulations.
- Balanced Trade Policy that doesn’t cement domestic protections at the expense of global competitiveness.
- Adaptability to address emerging trade barriers and technology adoption.
In short, grain groups say “yes” to renewal—but not at the cost of future adaptability.
This debate underscores a growing tension in Canadian agriculture. Supply-managed sectors want stability and protection, while export-oriented sectors want openness and reform.
The stance of the grain groups signals that trade agreements must evolve with market realities, not freeze them in time.
The formal six-year review of CUSMA begins in mid-2026.
We can expect grain groups to push for language that preserves science-based trade rules while allowing targeted adjustments. Their goal: keep North American trade strong, but ensure Canada can modernize its agricultural policies when needed.