U.S. targeting dairy, Online Streaming Act in USMCA negotiations, top Trump trade official says
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U.S. Trade Representative Jamieson Greer listed Canada’s protectionist supply-management policies as a major irritant, which he said ‘unfairly restrict market access for U.S. dairy.’Chris Young/The Canadian Press
Canada will have to negotiate over its protected dairy market and rules for streaming services if it wants U.S. President Donald Trump to renew the continental free-trade deal, one of his top trade officials told closed-door congressional hearings this week.
In a presentation delivered to both the Senate finance and House ways and means committees this week, and subsequently made public by his office on Wednesday, U.S. Trade Representative Jamieson Greer laid out the administration’s priorities for the coming renegotiation of the U.S.-Mexico-Canada Agreement.
But while he listed several perennial trade irritants, Mr. Greer was silent in the presentation on how or if Mr. Trump’s tariffs – including on steel, aluminum and autos – will factor into the talks. It was unclear whether Mr. Greer elaborated on such details under questioning from legislators.
The tone of the presentation suggested that the U.S. will press forward with the process for reviewing and renegotiating the deal – rather than simply abandoning it, as Mr. Trump has mused he might – but will still keep the threat of withdrawing from the pact on the table.
“USTR will keep the President’s options open, negotiating firmly to resolve the issues identified, but only recommending renewal if resolution can be achieved,” Mr. Greer said, according to the published text of his remarks.
He listed two major irritants with Canada: the Online Streaming Act, which he contended “discriminates against U.S. tech and media firms” as well as protectionist supply-management policies which “unfairly restrict market access for U.S. dairy.”
The Online Streaming Act brought Netflix, YouTube, Spotify and other companies under the authority of the Canadian Radio-television and Telecommunications Commission, allowing the regulator to mandate Canadian content requirements.
Supply management limits free-market competition, including imports, for dairy. While Canada agreed to changes to the system in 2018 USMCA negotiations, Ottawa and Washington have taken different interpretations of the text of the agreement, resulting in U.S. producers not exporting as much dairy to Canada as anticipated.
Mr. Greer also listed several other points of friction with Canada: the Online News Act, which requires internet platforms to pay publishers for linking to or republishing their content; procurement practices in Ontario, Quebec and British Columbia that advantage local companies; provincial bans on U.S. alcohol in retaliation for Mr. Trump’s tariffs; and Alberta’s treatment of electricity from Montana.
For Mexico, the U.S. plans to target labour practices, as well as the Mexican government’s drive to re-nationalize the country’s energy industry.
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Mr. Trump negotiated the USMCA in his first term to replace the previous North American free-trade agreement. Within it, he embedded a mechanism to periodically review the deal and require the countries to agree to continue it or allow it to lapse.
Despite the agreement’s free-trade structure, the President has imposed a wide range of tariffs on Canada and Mexico this year as part of his global trade war. Both countries have attempted to negotiate their way out of the levies ahead of the USMCA review. While the U.S. and Mexico are still negotiating, Mr. Trump abruptly ended talks with Canada in October over an anti-tariff ad on U.S. television by the Ontario government.
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Mr. Greer did not say in his presentation what the administration’s plan is for those tariffs or negotiations with Canada on them. He did, however, highlight Prime Minister Mark Carney’s concessions so far to Mr. Trump: axing Canada’s Digital Services Tax and rolling back retaliatory tariffs.
He also said that USMCA “has been successful to a certain degree,” and that the majority of business, labour and other groups that have participated in a public consultation process support the agreement. He said U.S. exports have risen under the deal and Mexican workers’ wages have nearly doubled.
While Mr. Trump and Mr. Greer have also previously mused about cutting separate deals with Canada and Mexico, Mr. Greer said in his presentation that, on some issues, “a trilateral approach may be required.” He listed ensuring more North American content in industrial goods and critical minerals as examples.
The presentation also marked the stepping up of Mr. Greer into a more active role.
While he is statutorily the U.S.’s top trade official and has always been expected to take the lead on renegotiating USMCA, Mr. Trump has placed his office under Commerce Secretary Howard Lutnick’s. So far, Mr. Lutnick has been much higher-visibility in talks with Canada, including in discussions over Mr. Trump’s metals and auto tariffs.
