Commentary
The decision by the United States not to renew the Canada-United States-Mexico Agreement on its current terms is not merely another trade dispute. It is a strategic warning. Canada should not panic, but neither should it underestimate what has just occurred. President Donald Trump has once again demonstrated that, in his view, uncertainty is not a risk to be avoided. It is a negotiating tool to be used.
Many Canadians will assume that CUSMA has collapsed. It has not. The agreement remains in force while negotiations continue. What has changed is the certainty that businesses, investors, and governments relied upon. Instead of a long period of stability, North America now faces annual reviews and continuing negotiations. For a country as dependent on trade as Canada, uncertainty itself becomes an economic cost….