The committee has heard repeatedly that Canada’s economic relationship with the United States remains the dominant concern for most sectors, with witnesses across multiple meetings describing deeply integrated supply chains that cannot be easily redirected. The auto sector, beef and cattle producers, pork exporters, forest products companies, and equipment dealers all emphasized that tariff-free access under CUSMA is essential to their viability, and that diversification into markets like Japan or Europe cannot replace the scale of the U.S. market. A recurring theme is the damage caused by U.S. Section 232 tariffs on steel, aluminum, and autos, which witnesses from the aluminum extrusion industry, auto manufacturers, and the Canadian Chamber of Commerce described as eroding competitiveness and threatening jobs. Several witnesses urged the committee to prioritize eliminating those tariffs and renewing CUSMA quickly and for as long as possible, with some warning that parallel trade negotiations, such as a potential Mercosur deal, could create friction with the United States.

On forced labour in supply chains, the committee heard from departmental officials about Bill C-35, which would shift enforcement from a shipment-by-shipment approach to a system based on a public list of goods, regions, or companies suspected of using forced labour. Officials acknowledged that Canada has not published enforcement statistics, unlike the United States, and that the current system faces challenges in identifying and intercepting prohibited goods. The bill would place the onus on importers to prove their goods are free of forced labour, and consultations on the list are planned for summer 2026. Witnesses from the department disagreed with a suggestion that targeting specific regions would be simpler, arguing the proposed flexible list provides greater adaptability.

A significant portion of the committee’s work has focused on trade diversification, particularly with Japan and other Indo-Pacific markets. Witnesses from the canola, pork, beef, and forest products sectors described Japan as a premium, reliable market supported by longstanding bilateral mechanisms and tariff reductions under the CPTPP. However, they consistently noted that these markets cannot replace the United States in volume or value, and that infrastructure bottlenecks—particularly at the Port of Vancouver and in rail capacity—and labour disruptions have damaged Canada’s reputation as a reliable supplier. Several witnesses called for sustained funding for market development programs like Canada Wood, investment in port infrastructure such as Roberts Bank Terminal 2, and practical support to help Canadian firms navigate demanding foreign markets.

Internal trade barriers emerged as a distinct theme, with witnesses from manufacturing, construction, and policy institutes arguing that Canada does not have free trade within its own borders and that regulatory patchworks impose significant costs on productivity and competitiveness. There was broad agreement among most witnesses that mutual recognition of standards is the preferred path forward, though witnesses from labour and food safety backgrounds cautioned that mutual recognition could undermine occupational health and safety, environmental standards, and food safety if not carefully designed. Several witnesses recommended creating a federal agency or bureau to systematically identify and address barriers, and using federal fiscal levers to encourage provincial compliance. The committee also heard from trade support organizations like EDC and BDC, which reported increased demand for their services amid tariff uncertainty, with EDC noting that over 65% of Canadian companies plan to diversify into new markets and that it has expanded its office network in Asia and Europe.