Prime Minister Mark Carney is steering Canada toward a broader network of mid‑level economies while the Canada‑United States‑Mexico Agreement (CUSMA) faces renewal on July 1. global investors, especially Japanese automakers, are urging Ottawa to preserve the pact, underscoring how essential tariff‑free U.S. access remains for Canada’s trade appeal.

Carney’s five trade missions aim to replace U.S. reliance

Since winning the April 2025 election, Carney’s government has dispatched four trade delegations to Asia and plans a fifth, larger mission to Japan later this month. The trips target mining, engineering and infrastructure projects, reflecting a strategy to attract non‑U.S. partners. According to interviews with a dozen officials, the goal is to build an “alliance of mid‑level economic powers” that can operate beyond President Donald Trump’s protectionist stance.

Japanese automakers lobby hardest for CUSMA continuity

Lobbying records show Toyota engaged the federal government 13 of 14 times this year, while Honda made 21 of 27 contacts, both citing the need to protect North America’s integrated auto supply chain. Their pressure highlights that the auto sector—dominated by Toyota and Honda—views CUSMA as a lifeline for duty‑free exports to the United States.

Other global firms echo the call to keep the pact unchanged

Sweden’s Volvo Group and South Korea’s Kia Corp. have also urged Ottawa to “maintain the CUSMA as is,” warning that alterations could raise costs and trigger job losses. while Honda, Volvo and Kia declined comment, the lobbying data reveal a coordinated industry push to avoid any weakening of tariff‑free access.

Canada’s parallel push for new deals with Asia and beyyond

Beyond the U.S., Carney’s administration has sealed a trade accord with Indonesia, an investment pact with the United Arab Emirates, and is negotiating with the Philippines, Thailand, ASEAN, India and Mercosur. A limited deal with China and expanded ties with Japan, Vietnam, Pakistan and Bangladesh are also on the table, indicating a multi‑pronged effort to diversify trade.

Who will set the timeline for Canada‑U.S. talks?

The United States has begun renegotiations with Mexico, but it has not announced when formal talks with Canada will start. As the CUSMA review deadline approaches, the uncertainty leaves investors watching for any signal that could affect the 85 percent of bilateral trade that remains tariff‑free.