The stakes are high as

Canada-United States-Mexico Agreement

(CUSMA) negotiations heat up, with a trilateral joint review set for July 1, 2026. One of the most

mutually beneficial trade relationships

in history is being challenged. The question is: how do we secure a mutually beneficial agreement and

create a more resilient economy

that can weather future challenges?

Canada’s prosperity is built upon free trade, and no partnership is more important than the one we share with the U.S., our

largest and most accessible export market

, accounting for

more than 75 per cent

of Canadian exports in 2024.

For perspective, no other country accounted for more than five per cent of export volumes last year. Our economies, supply chains and workforces are deeply intertwined, and both nations thrive when

trade flows freely

.

However,

new U.S. tariffs

, such as the Section 232 tariffs on autos, steel and aluminum, have threatened this stability, creating uncertainty and challenges for businesses, workers and communities anchored by manufacturing and agriculture. That is why it is critical our government urgently acts to get a trade deal done that promotes shared prosperity.

Our economies are inextricably linked: American workers and businesses succeed when Canadian workers and businesses succeed. Despite the rhetoric stating the opposite, Canada is vitally important to the U.S.

The U.S. sells more goods and services to us than we do to them, and Canada is the largest customer for no less than 36 American states. We matter to them, and they matter to us. That is a strong foundation to form an agreement. This is a time for pragmatic, focused negotiations that deliver results for Canadians and Americans alike. Let’s get it done.

Priority one

is to negotiate something in the interim to remove the 232 tariffs on autos, metal and metal derivatives. There are levers we can pull to get a deal done, and we need to do that. Increase regional value content (RVC) and perhaps agree to minimum U.S. content in vehicles if necessary. Consider dairy subsidies.

Are we really willing to sacrifice making vehicles in this country to continue to protect certain sectors?

Next priority, renegotiate CUSMA. Again, there is a deal to be made here to secure the future of trade with our biggest and most important trading partner. But CUSMA negotiations are just a starting point; Canada must strengthen connections to global markets.

Our country is uniquely positioned, with abundant natural resources — energy, minerals, water and farmland — accounting for

nearly 20 per cent

of Canada’s nominal gross domestic product (GDP). We also have a skilled, productive workforce and an amazing artificial intelligence technology sector that is transforming our manufacturing industry every single day.

Excluding government workers and not-for-profit workers, Canada has had robust productivity growth — more than 50 per cent over the past 25 years. Canadian manufacturing productivity has outpaced the U.S. steadily for more than a decade now.

We have free trade agreements with 56 countries around the world — 65 per cent of the world’s economy. The avenues are open. Now, let’s get out there and bring amazing Canadian products to the world.

To unlock the country’s potential, we must also boldly invest in the economic arteries of our trade infrastructure — ports, railways, highways and digital networks — so Canadian goods can reach customers reliably, efficiently and competitively.

The short- and long-term benefits are clear: 18,000 jobs are created for every $1 billion invested in infrastructure while also generating $1.6 billion in economic growth, according to Federation of Canadian Municipalities

estimates

.

Global demand for Canadian goods will only grow, so how quickly we modernize our trade policy and infrastructure will define our resilience.

At home, we must also dismantle roadblocks that fragment our domestic market. Historically, there have been a

patchwork of interprovincial rules

that make it harder to scale, invest and innovate, costing our economy up to

$200 billion a year

and reducing GDP by nearly eight per cent.

From manufacturers forced to recertify equipment or products across provinces to trucking companies and builders navigating different rules and paperwork for each province they cross, these obstacles have stifled investment, productivity and innovation.

Without a doubt, regulatory barriers for key industries such as natural resources are highly prohibitive and are discouraging investment. We must fix that.

All these ideas are not new and have been discussed with, and even promised to, Canadians. Now is the time to act and get this important work done.

This is a moment for pragmatic leadership and clear-sighted policy. Securing a stable, mutually beneficial trade relationship with the U.S., expanding our global reach, investing in export-oriented infrastructure, reducing stifling regulation for key industries and harmonizing our internal market are the building blocks of lasting Canadian prosperity and resilience. Let’s get it done.

  • Terence Corcoran: Beware calls for a ‘balanced’ trade deal with the U.S.
  • Diane Francis: To increase trade, get politicians out of the way

Linda Hasenfratz is the executive chair of Linamar Corp. and chair of the Association of Equipment Manufacturers’ board of directors.