The House of Commons International Trade Committee met to study the upcoming review of the Canada-United States-Mexico Agreement (CUSMA). Witnesses included Peter Maddox from the Direct Sellers Association of Canada, Ryan Greer from Canadian Manufacturers and Exporters, Corinne Pohlmann and Michelle Auger from the Canadian Federation of Independent Business, David Hamel from Scierie Clermond Hamel Ltd., and Carl Viel from Québec International.
Peter Maddox emphasized that the direct selling industry, which involves one million Canadians (84% women) and generates $3 billion in annual retail sales, is heavily reliant on integrated North American trade. He urged the committee to maintain Canada's de minimis duties exemption and seek restoration of a CUSMA-specific exemption in the U.S., as its removal has forced Canadian members to halt U.S. expansion or relocate warehousing. He also asked that the existing CUSMA language defining direct selling be preserved and that Canada streamline natural health product approvals to boost competitiveness.
Ryan Greer presented survey results showing 96% of manufacturers support extending CUSMA, though opinions vary on acceptable baseline tariffs, with most saying anything above 10% would make them uncompetitive. He identified securing relief from section 232 tariffs as the most urgent priority, followed by preserving market access, strengthening cooperation on non-market economy threats (particularly China), enhancing energy and critical minerals collaboration, and activating dormant CUSMA committees. He noted that 60,000 manufacturing jobs were lost between January and August 2025, and that long-term investment is being postponed due to uncertainty.
Corinne Pohlmann and Michelle Auger reported that 92% of small businesses want Canada to strengthen trade ties beyond the U.S. and China, and one-third have already pivoted away from the U.S. market. They highlighted that small firms struggle with complex customs procedures, the CBSA's CARM portal, the loss of the U.S. de minimis threshold, and inconsistent labour mobility rules. They recommended applying a small business lens across all CUSMA chapters, not just the SME chapter, and called for the return of retaliatory surtax revenues collected from small businesses, noting that existing support programs often exclude very small firms.
David Hamel described how softwood lumber tariffs have risen to 45%, causing his company to drop from exporting 50% of production to just 5%, flooding the Canadian market and driving prices down. He said sawmills do not need loans for productivity improvements, which would only increase supply, but rather need measures to stimulate domestic wood use, such as mandating wood in public building construction and reducing input costs like diesel taxes. He disagreed with any suggestion that loans would help, and stressed that without quick relief, closures will accelerate in November and December.
Carl Viel noted that while 92% of Canadian exports to the U.S. still cross tariff-free under CUSMA, diversification is now a necessity, not a luxury. He recommended intensifying support for organizations like Québec International to help SMEs with market diversification, ensuring Quebec SMEs have a voice in CUSMA consultations, and addressing issues such as the suspended U.S. de minimis exemption and professional mobility barriers. He also suggested improving the tendering component of trade agreements, noting that Canadian companies have underperformed relative to European firms under CETA.
The committee heard questions from members on topics including the CARM system, the impact of Chinese trade practices, the urgency of sectoral tariff deals, and the need for transparency on retaliatory surtax revenues. No procedural motions or votes were recorded during this meeting.
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