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What happens if Canada and the U.S. can’t come to an agreement on CUSMA?

Oct 2, 2025
Stephen Staley, a senior advisor and former political staffer, dives into the virtues of Nigel Wright, highlighting his contributions to Canadian conservatism and public service. Staley emphasizes Wright's character, generosity, and faith-driven humility. He reflects on the importance of combining moral excellence with professional success, presenting Wright as a model of service. The conversation also touches on significant trade relations between Canada and the U.S., and the potential impacts if agreements falter.
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INSIGHT

KUSMA's Sunset Is Less Dire Than It Sounds

  • KUSMA's sunset clause mainly triggers annual reviews, not immediate termination, preserving trade stability until 2036.
  • The real risk is unilateral early withdrawal via a six-month termination clause that could spark legal fights in the U.S.
INSIGHT

Early U.S. Exit Faces Legal Hurdles

  • A U.S. president could try withdrawing via the treaty termination clause but would face domestic legal constraints from Congress and prior legislation.
  • Revival of the earlier Canada-U.S. Free Trade Agreement if KUSMA ends is legally unclear and would likely reach Congress and the courts.
ADVICE

Use The Review To Negotiate Smart Compromises

  • Ottawa should use the 2026 review to seek pragmatic compromises on dairy, telecom, and air travel.
  • Smart concessions could ease U.S. negotiations while delivering durable benefits to Canadian consumers.
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