Enforce the CUSMA or it won't be 'worth the paper it's printed on,' top U.S. business leader says

The Canada-U.S.-Mexico Agreement(CUSMA) is at substantiveriskunless the three partners are held accountable for continuing to violate aspects of the deal, the head of the U.S. Chamber of Commerce says.

In the U.S., the trade pact is known as the United StatesMexicoCanada Agreement (USMCA). "Like any other agreement,the USMCA isn't worth the paper it's printed on withoutmeaningful compliance and enforcement," Suzanne Clark, the chamber's president and CEO, said Monday atthe North American Business Summit in Washington, D.C.

It's been almost three years since the tri-lateral trade pact, which replaced the North American Free Trade Agreement, came into effect. But Clark expressed concern that since it was signed, all three countries are guilty of not complying withparts of the deal.

Canada, for example, hasn'thonoured its obligation to enhanced market access that was granted to the U.S. and Mexico for dairy, she said. The U.S. has failed to implementthe CUSMA ruling on automotive parts rulesof origin, Clark added.

Meanwhile, Mexico has failed to hold up its CUSMAenergy obligations, she said.

"And that's just to name a few examples where compliance is falling short."

Clark saidgovernmentofficials will say that the three countries will work through these issues, that they're just normal irritants in a commercial relationship, and that theCUSMA does provide necessary mechanisms to resolve problems.

"That may be true, but it's also just as simple as keeping our word," she said.

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North Americais a "family" of states that can come together with goodwill and candor to see what's working, and what needsto be improved, Clark said.

"That work begins with fully implementing and complying with the letter and the spirit of USMCA."

'Push for accountability'

She saidshe knows of thespeculation about why there isn't more ofa focus on enforcing provisions that it's not a priority,that it's tied to other geopolitical considerations or it's caught up in the crisis on the U.S.-Mexico border.

"But no matter what the underlying cause of inaction, it's important that the people in this room push for accountability and compliance," she said.

These issues must be resolvednot only to prove the deal works or to fulfilits potential, butmost importantly, "to prove that we can do it,"and that there's a commitment to making the dealstrong, Clark said.

"So that if an administration changes or when the USMCA undergoes its scheduled joint review in 2026, theeconomic case is indisputable. Noone can say that this agreement isn't maximizing North American competitiveness," Clark said.

The CUSMAbuilt on the success of NAFTA andprovided the transparency and certaintythe business community needs, she said.

"Failing to do so undercuts ourpotential to be the world's most competitiveregion."

"When these factors are not present, investment can't thrive, the economies cannot grow, jobs cannot be created and we do not enjoy prosperity," Clark said.

"When they are absent, corruption thrives, ambiguity reigns, investment dollars flee and tax revenues plummet."