CTA CUSMA Review Focuses on Trade Issues Impacting Carriers
CTA News Release
(TORONTO, Nov. 14, 2024) -- The Canadian Trucking Alliance (CTA) recently submitted comments to the Government of Canada as part of consultations on the upcoming Canada-U.S.-Mexico (CUSMA) trade agreement review in 2026. The Alliance highlights several historic trade irritants and current threats to the movement of international trade by truck that make up an initial list of priority items from the Alliance.
The CUSMA trade agreement, which came into effect in 2020, has an agreed-upon sunset provision allowing all parties to mutually review the agreement in 2026. This stipulation was formalized as a part of the North American Free Trade Agreement (NAFTA) renegotiations which began in 2018. The review clause provides a critical opportunity to modernize the current agreement and ensure its meeting the demands of today’s business environment and the needs of international trade in North America.
Some of the developing issues that were emphasised through feedback given to the CTA include: The need to mitigate the impact of nuclear verdicts and the threats they pose to the movement of trade by truck into the U.S.; dedicating increased resources to combat cargo theft and rampant fraud in international goods movement; and identifying barriers and areas of alignment between Canada and Mexico as more Canadian fleets explore business opportunities in the Mexican market.
Several long-standing issues that have not been effectively addressed by governments on both sides of the border, which must also be reviewed, include: Canada-U.S. Tax Treaty implications and tracking of driver’s time spent in the U.S.; the need to coordinate joint customs inspections to increase border efficiency; implementing a permanent U.S. in-transit process for Canadian fleets; allowing the repositioning of foreign empty trailers; and fixing lengthy delays for U.S. visa processing for Canadian truck drivers.
“If we want commerce between our countries to grow, our governments must ensure that any policies don’t impede or negatively impact the movement of goods. Simply put, if freight and the trucks that transport goods across the border can’t move efficiently, the value of CUSMA trade is significantly reduced to the detriment of all parties,” says CTA’s Lak Shoan.
Furthermore, despite comments from political pundits and government officials signaling their concerns about increased protectionism and the future trade relationship between Canada and the U.S. on the eve of a new U.S. administration being sworn into office, the Alliance believes many of these concerns can be overcome like they were in the past.
“Although the renegotiation of NAFTA was contentious at a times, President Trump was a signee on the same CUSMA agreement that all three parties continue to benefit from today. The fact that CTA saw progress on bilateral trucking issues, including empty trailer movements during this period, should indicate some optimism around some of the long-standing bilateral issues involving our sector,” says Stephen Laskowski, president, CTA.
CTA will continue to work with carriers and its board to identify and prioritize additional items which could be included as part of the review of the tripartite agreement in advance of 2026.
CTA staff will also continue to work with the Canadian Embassy in Washington and trucking groups in both the U.S. and Mexico to explore joint messaging and areas of alignment between our countries in advance of the formal review process commencing.