Op-Ed: One Market, One Industry: A shared Future

As we approach July 1, AMU aims to provide readers with a broad and deep understanding of the negotiations. We’ve enlisted aluminum industry representatives from each country’s respective trade associations to weigh in on what they hope will be achieved in this next round of the USMCA.

Introduction

The 2020 trade agreement between neighboring North American countries came to be known as United States-Mexico-Canada Agreement (USMCA). This July 1 marks USMCA’s first milestone. Set to expire in 2036, the group mandated this six-year checkpoint to assess the viability of the pact. The deadline initiates the review process and is not a mandatory date by which all parties must decide whether or not to continue the agreement.

As we approach July 1, AMU aims to provide readers with a broad and deep understanding of the negotiations. We’ve enlisted aluminum industry representatives from each country’s respective trade associations to weigh in on what they hope will be achieved in this next round of the USMCA.

If you missed the American Aluminum Association’s perspective, find it here. This week, Jean Simard, the President and CEO of the Aluminum Association of Canada voices the Canadian industry’s point-of-view.

Canada’s perspective

Since its entry into force, the Canada-United States-Mexico Agreement (CUSMA) has proven to be a cornerstone of North American economic stability and growth. It has reinforced the region’s position as one of the most competitive and integrated markets in the world, supporting cross-border investment, innovation, and high-quality employment across all three economies. 

Trade and investment have grown steadily in both countries, reflecting the resilience of the North American supply chains, even as global disruptions and non-market-based practices have become increasingly prevalent.

The agreement has reinforced the integrated nature of the North American aluminum market, in which Canadian producers provide a secure and stable supply of a material essential to the transportation, construction, defense and energy industries representing more than 50% of US demand for primary metal or 27% of the US total aluminum consumption. For every job in Canada’s primary aluminum sector, approximately thirteen well-paid jobs are supported in the United States.

Since the agreement’s implementation, billions of dollars have been invested on both sides of the border. While the US was investing $10 billion in its processing industry, Canada was investing the equivalent in its primary assets to remain competitive.

But the agreement can and should be enhanced to better reflect today’s economic realities: the growing influence of non-market-based economies, the volatility of global trade actions, and the shifting patterns of production and supply chains that define modern commerce.

As Mexico effectively safeguards its own market, it will not only reinforce the resilience of the North American system but also create a fairer competitive environment for Canadian and US businesses seeking to expand in Mexico, supporting greater regional diversification and balanced growth.

The goal should not be to reopen what is working, but rather to reinforce and modernize key provisions of CUSMA to enhance competitiveness and secure the integrity of North American markets.

The review should preserve continuity and predictability, focusing on practical improvements that modernize implementation while maintaining the trust and stability that CUSMA has built among North American partners. When significant adjustments are required, as in the case of aluminum, targeted side agreements or appendices to the main text should be the preferred approach.

The review should place greater emphasis on improving transparency and enforcement, particularly in sectors identified as critical to economic and national security.

When preferential access is granted without adequate traceability or enforcement mechanisms, it can encourage practices that conceal the true origin of goods. The import of falsely declared aluminum wheels is a clear example of this type of behavior, which undermines fair competition and weakens confidence in the integrity of the agreement’s preferential regime.

Over the past years, certain unilateral trade measures have been introduced outside the CUSMA framework, notably the US tariff of Section 232. These actions create friction and distort established trade flows. The goal should be progressive elimination of tariff and nontariff barriers that run counter to CUSMA’s spirit and objectives. Aligning tariff measures and ensuring coherence between national and continental trade policies will help protect North America’s integrated value chains.

Greater alignment, particularly in response to imports from non-market-based economies, would strengthen preferential North American trade, reduce the risk of diversion, and present a united front against unfair external competition.

A coordinated North American approach built on the foundation of CUSMA can ensure that the continent remains a trusted source of aluminum, providing critical inputs to the industrial ecosystems while advancing shared economic and national security interests.

The automotive sector is a cornerstone of North America’s industrial integration. From Canadian aluminum smelters to US component manufacturers and assembly plants across both countries, the aluminum industry shares the same ambition as American and Canadian automakers: to see this value chain thrive to its full potential.

Pitting these industries against one another with the friction of tariff regimes is like pressing the gas and the brake at the same time: energy is wasted and momentum lost. When that momentum fades, North America’s industrial competitiveness falters, risking the loss of its edge against external pressures, particularly those from non-market-based economies such as China.

Transparency and traceability are essential to ensuring the credibility of CUSMA’s preferential regime. Canada’s Aluminum Import Monitoring (AIM) system, together with emerging US and Mexico’s mechanisms, should be aligned to form a unified continental framework for trade data collection and analysis. The industry considers it a prerequisite for fully realizing and benefiting from the broader advantages of the agreement, as it underpins
the trust and accountability on which preferential access depends.