Is CUSMA the best way of trade war with the United States?

Business leaders were hoping that the White House meeting between Prime Minister Mark Carne and US President Donald Trump would provide a framework for how to advance commercial conversations.

After the two leaders spoke at the Oval Office, the unlikely winner appears to be the emergence of the Canada-USA Convention on Trade (CUSMA, or USMCA as it is called in the United States).

At his oval office meeting with Carney, Trump was asked whether USMCA had died.

“No, it was very effective and still is very effective. But people should follow it. This is the problem, people did not follow,” Trump said.

In the next breathing, think that the commercial deal was a transitional step that could not be necessary in the future.

But his embrace of the agreement may be sufficient to reset the standards of commercial talks between Canada and the United States.

“I think the president has opened a wide open door and we need to drive through him,” said Goldi Haider, Chairman of the Business Council in Canada.

Cusma compliance

Since the outbreak of the trade conflict, Haider said repeatedly that CUSMA is the best mechanism for resolving the conflict. He says that many Canadian companies were not forced to take steps to become compatible with CUSMA because they were given the status of the “most preferred nation” under previous commercial deals.

Trump has repeatedly accused the Canadians of cheating. Some say that the presence of many products that are not compatible with CUSMA added fuel to it.

RBC Economics says that the vast majority of Canadian exports can be compatible with CUSMA if companies pass this process.

“Through our account, it is likely that more than 94 percent of Canadian exports to the United States are compatible with the rules of origin.”

Haider says that the passage of the process of ensuring that most Canadian products are already compatible with the new deal, unlike old deals, will help distinguish some fears from the White House.

He says that the message was made loud and clear by the president during his general statements with Carney.

“In public recognition that the best way to move forward is through USMCA,” Haider said.

The framing of the conflict through CUSMA also says that it contains some fluctuations associated with definitions and threats emanating from the White House.

An opportunity for Canada?

One of the problems so far was the sprawling nature of the president’s complaints.

Trump cleared everything of cars and steel to energy and made Canada State 51.

The issues were very large and very varied, it was difficult to know how the conflict might end.

The veterans in Canada and the United States have long not expected that Trump would get out of the meeting with Carney as defender of the commercial deal.

“I was somewhat surprised that President Trump was defending Kosma as a good deal,” said Frank Makina, a former and political politician for a long time.

This may be useful, since Canada has issues that you also want to solve, according to our Makin.

“We need to make them understand that this is a bilateral negotiator,” said Makina.

A case was highlighted near the top of that list by Carney because he told Trump Canada some changes to the deal as well.

“Part of the way these definitions have been benefited from the current aspects of USMCA,” Trump said.

Possible steps

Companies and commercial associations have repeatedly told politicians to find a way to hold conversations.

The uncertainty caused by the customs tariff weighs investing business in both countries. The same definitions hurt companies throughout the continent.

Initially, business societies seemed optimistic after meeting at the White House.

The Canadian Chamber of Commerce said that re -setting the relationship was very required. President and CEO Candice Ling said she admired the meeting of the meeting and feeling the momentum.

“The countries that work and make things together will be useful for both parties for decades, if we can maintain discussions such as going today,” Ling said in a statement on Wednesday.

The question is how to actually get negotiations.

“We have agreed to hold more talks in the coming weeks and we look forward to the meeting personally at the 7 Group Summit in Kannaskes, Alberta,” Carney said.

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CUSMA is not supposed to be re -negotiated until 2026. But Haider and others say there is no need to wait. In fact, Haider says that Carney should propose a meeting in Canada, Mexico and the United States on the sidelines of the G7 to start these talks.

“Call them to G7, and top the North American leaders, the side ribbon, put on the agenda: Where do we go from here?” Haider says.

One of the main questions that remain on the trade war is what may seem to be the exit slope.

At the White House this week, Trump has placed a clear path. His opinion may change. The president has a volatile nature.

But Haider says that Canada simply cannot leave the opportunity to have conversations.