Canada has initiated consultations regarding the Canada-United States-Mexico Agreement (CUSMA), but experts warn that the country lacks the necessary resources to effectively engage in trade negotiations. The United States has more than 700 trade experts ready to protect its interests, while Canada has none. This disparity stems from the dismantling of Canada's Sectoral Advisory Groups on International Trade in 2013, a move intended to save costs that has now resulted in significant economic losses.

An international trade lawyer, who has testified before U.S. trade authorities multiple times this year, emphasized that Canada is not only outmatched but is also failing to participate in the negotiations. "We’re not just outgunned, we’re not even in the fight," the lawyer stated.

While consultations are necessary, experts argue that without a clear strategy, these discussions are merely costly exercises. The U.S. has a structured consultation process supported by expert advisory bodies that influence policy decisions. In contrast, Canada’s approach is criticized as being overly optimistic, relying on goodwill rather than concrete strategies to protect its $3.6 billion daily trade relationship with the U.S.

The lack of a robust trade strategy has led to significant setbacks for Canada. For instance, when the U.S. demanded the withdrawal of Canada’s Digital Services Tax, the Canadian government complied within hours. Similarly, when Meta blocked Canadian news, Canada had no effective response. These incidents highlight the consequences of entering negotiations without a solid plan.

U.S. Ambassador Pete Hoekstra has indicated that strengthening the trading partnership is a priority, but this will likely be on terms favorable to the U.S. The U.S. is focused on protecting its interests, while Canada appears to be unprepared. The aggressive trade tactics seen during the Trump administration have become entrenched, and Canada’s reliance on a perceived special relationship with the U.S. may not provide the protection it hopes for.

To improve its position, Canada must take immediate action. Experts recommend re-establishing its trade advisory infrastructure without delay. This includes developing a clear strategy that defines objectives, identifies leverage points, and sets red lines before engaging in consultations. Additionally, Canada should mobilize sectoral experts and create formal advisory committees across various industries, ensuring they have direct access to negotiators.

Trade policy should be treated as a serious matter rather than a public relations exercise. Every ineffective announcement undermines Canada’s negotiating position. Acknowledging the economic challenges and coordinating efforts among provinces, industries, and unions is crucial for Canada’s economic future.

As the CUSMA review process progresses, Canada cannot afford to lag behind. Each day spent on superficial consultations instead of substantive preparation allows competitors to gain an advantage. With Canada’s economy significantly smaller than that of the U.S., it is essential to negotiate from a position of strength. The current approach, characterized by a lack of resources and preparation, risks further economic disadvantage.

In conclusion, Canada must shift from a hopeful mindset to a proactive strategy. Mobilizing expertise and crafting a comprehensive plan is vital to ensure that Canada can effectively navigate its trade relationship with the U.S. Without these changes, Canada risks being sidelined in negotiations that will shape its economic future.