Scrapping CUSMA would be ‘phenomenally disruptive’: Hillman on future of the deal

Former Canadian ambassador to the United States, Kirsten Hillman doesn't think CUSMA is going anywhere, despite approaching deadline to review the agreement.

Former Canadian ambassador to the United States, Kirsten Hillman doesn’t think CUSMA is going anywhere, despite the fast-approaching deadline to review the Canada-U.S.-Mexico Agreement and the rhetoric employed by Trump administration trade officials.

“I personally do not believe that the agreement will go away, and (the U.S. trade representative) has said that,” Hillman told CTV Question Period host Vassy Kapelos in her first interview since she ended her tenure as ambassador.

“But more importantly, I just think that the economic ramifications for the U.S. are too serious,” Hillman added in an interview airing Sunday. “They’re very serious for Canada, very serious for Mexico, but this agreement isn’t just about tariffs, right?”

Hillman served as Canada’s top diplomat in Washington from 2019 to 2026. Mark Wiseman has since taken over the role.

There’s little more than a month to go until the July 1 CUSMA review deadline. And, while the U.S. and Mexico say they’re making progress on their formal bilateral talks, Canada is not engaged in formal negotiations.

Hillman, however, said the July 1 deadline is not a “make-or-break date,” and that because it’s clear based on their rhetoric that U.S. officials want to review certain aspects of the agreement, the next month will largely serve to give a more precise understanding of what the Americans are looking for.

By July 1, officials are set to either decide to renew CUSMA for a 16-year period or agree to an annual review process.

Canada and the U.S., meanwhile, have been in a protracted trade war for more than a year, after U.S. President Donald Trump slapped a slate of tariffs on Canadian imports. While the vast majority of products are tariff-free because they’re covered under CUSMA, several sectoral levies are still in place.

Hillman said while Trump focuses a lot on tariffs, there are other rules set out in the deal beyond them, namely around intellectual property protection, services trade, customs procedures, and “everything that goes into the competitiveness of North America.”

“Wiping all of that away would be phenomenally disruptive,” Hillman said. “It’s not good for America, right?”

“I hope I’m not wrong, you can never say anything for certain in this particular context, but my money’s on that agreement staying,” she added. “Maybe being modified but staying in place.”

Asked about the live discussion around the timeline of a potential new deal with the U.S. and whether to wait for the best deal possible, versus the impact the uncertainty is having on business investment, Hillman said that despite the trade war, Canada still has the best deal with the U.S. compared to any other country.

“Yes, we have tariffs on steel, aluminum, autos. Yes, they are very difficult for those sectors,” she said. “I don’t mean to diminish that at all, but we do have a very good agreement with the U.S., and it has persisted since President Trump came in, and it has persisted despite the fact that he has upended his tariff relationship with the world.”

“I think it’s really important that we focus on that,” she added. “Where the changes will come will be modifications to that, or additions to that, that’s what this review is about.”

Hillman also said the “good news” is that many U.S. sticking points are “things (Canada) can work with,” for example strengthening rules of origin and economic resilience.

You can watch former Canadian ambassador to the U.S. Kirsten Hillman’s full interview on CTV Question Period Sunday at 11 a.m. ET.