The House of Commons Standing Committee on International Trade (CIIT) met on October 23, 2025, to study the upcoming review of the Canada-United States-Mexico Agreement (CUSMA). Witnesses included Joshua Meltzer, a senior fellow appearing as an individual; Tim Reuss and Huw Williams from the Canadian Automobile Dealers Association; Trevor McPherson from the Mississauga Board of Trade; Mike Kilby from the Canadian Aluminum Extruders Coalition; Troy Sherman from the Canola Council of Canada; and David Adams from the Global Automakers of Canada.
Joshua Meltzer testified that Chinese circumvention of U.S. tariffs via Canada—through transshipment, supply chain inputs, or Chinese investment—is a growing issue in U.S.-Canada trade relations, driven by the widening gap between U.S. tariffs on Chinese imports (now averaging 43%) and lower Canadian tariffs. He argued that addressing this will require Canada to consider aligning its tariff and investment screening regimes with the U.S., but cautioned against hasty expansion of Canadian tariffs given U.S. policy uncertainty, and recommended that Canada seek reciprocal commitments from the U.S. if it ties its trade policy more closely to Washington's.
Tim Reuss, representing 3,400 franchised car dealers, emphasized that consumer affordability is the top concern, with average monthly payments far exceeding what most Canadians expect. He urged the government to repeal the electric vehicle mandate, arguing it is unnecessary given existing greenhouse gas emission targets and that the removal of purchase incentives has made mandated targets impossible. He also called for the repeal of the so-called luxury tax on vehicles, which he said costs more to administer than it generates in revenue, and cautioned against retaliatory tariffs, which would worsen affordability.
Trevor McPherson highlighted that Mississauga's economy, home to diverse industries including life sciences and advanced manufacturing, has been hurt by the trade war, with unemployment rising from 7.3% to 9.8%. He recommended prioritizing continuity of CUSMA with longer-term certainty, implementing targeted measures to strengthen the agreement—such as expanding the North American competitiveness committee—and reducing or eliminating tariffs among the three nations, while also noting that harmonizing regulations, particularly in life sciences, could speed access to innovative medicines.
Mike Kilby, speaking for the Canadian Aluminum Extruders Coalition, stated that U.S. tariffs have created a crisis for downstream aluminum extruders, causing job losses and allowing foreign extrusions diverted from the U.S. to flood the Canadian market. He requested the elimination of tariffs on Canadian aluminum exports, immediate barriers to stop the diversion of extruded products into Canada, a seat at the table for CUSMA negotiations, and support equal to that given to steel and automotive industries, noting that the exclusion of a 70% North American raw aluminum content rule for autos in CUSMA has allowed Chinese aluminum to enter via Mexico.
Troy Sherman explained that CUSMA is essential for the canola industry, with $8.26 billion in exports to the U.S. and Mexico in 2024, and that the industry faces a serious challenge from Chinese tariffs of 100% on canola oil and meal and a provisional anti-dumping duty on seed. He urged maintaining tariff-free trade, preserving the trilateral nature of the agreement and its dispute settlement mechanism, and moving the Canada-U.S. Regulatory Cooperation Council under CUSMA, while noting that government support measures announced in September missed the mark and that the industry needs net new demand, particularly from domestic biofuels.
David Adams, representing 16 automakers responsible for over 62% of Canadian vehicle sales, stated that the CUSMA has the most stringent rules of origin of any modern trade agreement and that Canada must defend a trilateral agreement that works. He recommended eliminating the sunset clause (article 34.7) to provide certainty, taking a surgical approach to any changes rather than a wholesale renegotiation, and resolving section 232 tariffs on autos as soon as possible, noting that the U.S. has ignored the binding automotive side letter designed to insulate Canada from such tariffs.
The committee heard from members of Parliament who questioned witnesses on various topics, including the impact of the luxury tax, the need for regulatory harmonization, and the challenges facing the canola and aluminum industries. No procedural debate, motions, or votes were recorded in the transcript.
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