Canada is entering a critical phase of trade negotiations with the United States ahead of a scheduled review of the Canada-U.S.-Mexico Agreement (CUSMA) in early 2026, and voices from labour and industry are urging the federal government to remain firm rather than rush into a deal that could undermine Canadian interests. Unifor national president Lana Payne argues that Canada should use its negotiating leverage to secure favourable terms and resist pressure for a quick settlement that could disadvantage workers and key domestic sectors.

Payne has expressed concern that some in the business community are prioritizing speed over substance in trade discussions, suggesting that a hurried agreement could lock in concessions on sensitive industries without adequate protections. Instead, she says, Ottawa should be prepared to negotiate hard and only accept a deal that safeguards Canada’s economic priorities — especially in areas like dairy supply management, alcohol, and digital services, where U.S. negotiators have raised objections.

Prime Minister Mark Carney has confirmed that formal talks are set to begin in January 2026, underscoring the importance of resolving outstanding issues ahead of the review deadline. Payne argues that Canada’s position is strengthened by emerging economic pressures within the U.S., including manufacturing job losses and weak hiring trends that could create leverage in negotiations if Ottawa holds firm. She warns that caving to threats — such as the possibility of tariffs being legitimized or the U.S. withdrawing from the agreement — would be counterproductive and could set a poor precedent.

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The upcoming discussions come amid broader trade uncertainty that has clouded Canada’s economic outlook, with the Bank of Canada noting that unresolved trade issues are complicating its policy expectations. This backdrop reinforces the argument that Canada must approach negotiations with caution and strategic resolve, rather than seeking a quick fix.

At the same time, Ottawa is balancing the need to protect domestic industries with opportunities to diversify trade relationships. Canada has been strengthening ties with other global partners, such as through recent initiatives with European nations and agreements with countries like Indonesia, aiming to reduce reliance on a single market and expand export opportunities abroad.

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In summary, as CUSMA talks approach, many Canadian stakeholders — including labour leaders and economists — are urging the government to stand firm in negotiations, leveraging Canada’s economic strengths and strategic trade partnerships to secure a fair and resilient agreement rather than one shaped by haste.