Prime Minister Mark Carney is taking action to address growing trade tensions with the United States and prepare for the upcoming review of the Canada-United States-Mexico Agreement (CUSMA). The federal government is establishing a new Canada-U.S. advisory council to navigate the evolving North American economic landscape.

New Advisory Council Leadership

The restructured advisory council will be led by Clerk of the Privy Council Michael Sabia and lead trade negotiator Janice Charette. This shift signifies a move towards a more focused and technically driven approach to trade diplomacy.

Responding to U.S. Trade Policies

This strategic pivot comes as Canada adapts to increasingly protectionist policies emerging from Washington. Recent tariffs have negatively impacted key Canadian industries, including steel, aluminum, lumber, and automotive sectors.

CUSMA Review Preparations

The 2026 CUSMA review period is a key focus for the Canadian government. U.S. Trade Representative Jamieson Greer has noted the challenges in reaching a consensus before the July 1 deadline, suggesting Canada may be behind Mexico in negotiations.

Acknowledging a Shifting Landscape

Prime Minister Carney has acknowledged that traditional Canadian economic strengths are becoming vulnerabilities in the current trade environment. He emphasized the need for a protracted negotiation period and potential concessions to protect long-term domestic interests.

Bilateral Discussions and Next Steps

The United States is actively engaging in bilateral discussions with Mexico, as demonstrated by a recent meeting between Jamieson Greer and President Claudia Sheinbaum. Canada is simultaneously intensifying its own preparations for the CUSMA review.

The first official bilateral round of negotiations is scheduled for late May in Mexico City. The government’s restructuring of the advisory council aims to ensure it is fully operational and equipped to maintain economic stability.

The transition to a leaner advisory group, focused on agility, reflects the administration’s commitment to constructive dialogue while recognizing the aggressive nature of the current trade climate.