Experts point out that China has a troubling track record of leveraging trade as a weapon. For instance, in 2025, Beijing imposed a staggering 75.8 percent tariff on Canadian canola seed exports, severely impacting Canadian farmers. This action exemplifies the type of economic coercion that could undermine the foundational principles of the CPTPP.

The CPTPP, originally negotiated as the Trans-Pacific Partnership, was designed to promote free trade among member nations while ensuring compliance with international obligations. Yet, China’s bid poses a challenge to these ideals. As Ed Fast noted, “When trading partners have pushed back on specific abuses, China has deployed economic coercion—cutting off exports of critical raw materials, imposing punishing tariffs, and leveraging market access as a geopolitical weapon.” This behavior raises doubts about whether China would adhere to CPTPP standards.

That context matters because it highlights the delicate balance of power in trade negotiations. Canada’s experience serves as a cautionary tale; it has faced retaliatory measures from China before, notably during its suspension of canola imports in 2019. Such actions underscore the risks inherent in allowing a nation with such practices into a multilateral agreement.

Looking beyond the CPTPP, similar dynamics are playing out in other major trade agreements. The EU-Mercosur deal, which will take effect on 1 May 2026, aims to eliminate tariffs on over 90 percent of bilateral goods exchange and is expected to bolster EU exports by 39 percent. However, Poland has already expressed concerns about potential agricultural risks associated with this deal.

The future remains uncertain regarding China’s integration into the CPTPP and its broader implications for global trade. While negotiations continue, stakeholders must carefully consider how economic coercion might shape not only this agreement but also future international trade dynamics.

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The Canada-United States-Mexico Agreement (CUSMA) marks a significant milestone in North American trade relations, succeeding the North American Free Trade Agreement (NAFTA). Effective from July 1, 2020, this agreement aims to enhance economic ties, protect jobs, and foster growth across the three participating nations. Given the ongoing shifts in global trade dynamics and the recognition of the importance of regional supply chains, understanding CUSMA’s provisions is crucial for businesses and individuals alike.

Main Body

Key Provisions of CUSMA

CUSMA brings forth several vital changes that impact trade, including stronger intellectual property protections, increased labour standards, and adjustments in dairy, wine, and poultry trade. Notably, it raises the regional content requirement for automobiles and automobile parts from 62.5% to 75%. This means that a greater percentage of the components used in vehicles must come from the three countries involved in the agreement.

Economic Impact

Trade within North America has been robust, with goods and services exchanged between the countries reaching over $1.5 trillion annually. Economists suggest that CUSMA will bolster this trade by promoting fair competition and ensuring that a significant portion of manufacturing occurs within North America. According to a report from the U.S. International Trade Commission, CUSMA is expected to generate an additional $68.2 billion in economic output over time. This could lead to the creation of approximately 176,000 new jobs in the U.S. alone.

Challenges and Controversies

Despite its benefits, CUSMA faces criticism from various sectors. Some argue that the provisions may not adequately consider the unique economic landscapes of each country, particularly with respect to agricultural markets and labour rights. Additionally, the pandemic has presented unforeseen challenges to the agreement’s implementation, leading to calls for periodic reviews to adapt to evolving circumstances.

Conclusion

CUSMA represents a pivotal shift in North American trade relations, aiming to strengthen economic ties and address contemporary trade issues. While its long-term impacts remain to be seen, it is clear that the agreement has already begun reshaping cross-border commerce. For businesses operating in these regions, understanding CUSMA is not just beneficial but essential for navigating the complex trade landscape of North America. As we move forward, ongoing evaluations and collaborations among the member countries will be vital in ensuring the agreement’s success and relevance in an ever-changing global economy.

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