Canada has announced it will begin consultations regarding the Canada-United States-Mexico Agreement (CUSMA). However, experts warn that the country lacks the necessary resources to effectively engage in these discussions. The United States has over 700 trade experts ready to advocate for its interests, while Canada has none. In 2013, Canada dismantled its Sectoral Advisory Groups on International Trade (SAGITs) to cut costs, a decision that is now being criticized as detrimental to the economy.

An international trade lawyer, who has testified before U.S. trade authorities multiple times this year, expressed concern about Canada’s position. "We’re not just outgunned; we’re not even in the fight," the lawyer stated. The need for consultations is clear, but without a strategic framework, these discussions may be ineffective. The U.S. has a structured consultation process that includes expert advisory bodies, which help shape policy and provide real-time support during negotiations. In contrast, Canada’s approach has been described as relying on goodwill rather than concrete strategies.

The lawyer emphasized that Canada’s trade relationship with the U.S., valued at $3.6 billion daily, is at risk. Past negotiations have shown that Canada often enters discussions without a solid plan, leading to unfavorable outcomes. Recent incidents, such as Canada’s quick withdrawal of its Digital Services Tax in response to U.S. pressure, highlight the need for a more robust strategy.

U.S. Ambassador Pete Hoekstra has indicated that strengthening the trading partnership is a priority, but this is likely to be on terms favorable to the U.S. The current U.S. administration has adopted a transactional approach to trade, which has proven effective for them. Meanwhile, Canada appears to be relying on the notion of a special relationship with the U.S., which may not provide the protection it hopes for in negotiations.

To address these challenges, experts suggest several immediate actions for Canada. First, the country should re-establish its trade advisory infrastructure without delay. Every day that passes without action risks further losses for Canadian businesses and workers. Second, Canada needs to develop a clear strategy before engaging in consultations. This includes defining objectives, identifying leverage points, and establishing red lines. Finally, it is crucial to mobilize sectoral experts to form advisory committees in key areas such as energy, critical minerals, and digital trade.

The call to action is clear: Canada must take decisive steps to protect its economic interests in the face of ongoing trade negotiations.