Strengthening Canada’s position: The importance of applying a rural lens to CUSMA

Submission to the Government of Canada re: CUSMA review

Introduction

The Rural Prosperity Group (RPG) appreciates the opportunity to contribute to the Government of Canada’s review of the Canada–United States–Mexico Agreement (CUSMA).

Rural Canada is a critical driver of national competitiveness and the core of the North American economy. It produces nearly 60 per cent of Canada’s exports, generates 30 per cent of national GDP and underpins supply chains that connect Canada to continental and global markets. 

It is home to the resources, production capacity and infrastructure that drive exports of food, energy, critical minerals and advanced manufacturing inputs. It also anchors emerging sectors such as clean energy, agri-tech, AI-enabled logistics and digital infrastructure development.

As noted in a recent national op-ed by Jacquie LaRocque and Ken Polk, “The rural economy and the way of life that drives it must not only thrive but also be central to every decision Ottawa makes — from business taxes collected because of entrepreneurs, to procurement of digital services, to the movement of Canadian goods the world needs.”

As Canada seeks to strengthen its position within North America, the Government of Canada should apply a rural lens to its review of the Canada-U.S.-Mexico Agreement, in particular in the SME and Competitiveness chapters of CUSMA. Indeed, Canadians — no matter where they live — expect their government to recognize and leverage the significant strengths and opportunities of Canada’s rural areas and regions when engaging with key trading partners. They also expect that any potential threats to rural success and livelihoods be carefully mitigated. At a time when the world needs rural Canada more than ever — for food, energy, machinery, or other essential resources — this is a time to act decisively and responsibly to secure its future. 

The case for a rural lens

The SME Chapter (Chapter 25) provides a foundation for cooperation to enhance the participation of small and medium-sized enterprises in trade. However, it does not explicitly recognize rural and remote SMEs as a distinct category requiring targeted support.

The Competitiveness Chapter (Chapter 26) establishes a cooperative framework to promote regional prosperity and innovation. However, it currently lacks a structured mechanism for geographic inclusivity or rural economic integration.

As noted in the Rural Prosperity Group’s pre-budget submission to the House of Commons Finance Committee and Finance Department, Rural Strong: Unleashing Canada’s Competitive Advantage, “It is an extraordinary time in our country’s history — one defined by global instability, strained affordability and the urgent need to rebuild Canada’s economic foundations. These challenges underscore a fundamental truth: the world needs more Canada, and as Canadians, we cannot succeed without rural Canada.”

In our submissions we asked, among other measures, for the government to apply a rural lens to all trade negotiations and agreements. RPG asks that no regulation, program or policy — domestic or international — harms rural Canada. This can be avoided by a relentless and consistent consideration of rural Canada's needs, challenges and opportunities at all stages of talks and in any future implementation.

RPG strongly supports the positions advanced by some of Canada’s leading rural industries — such as forestry, agriculture and supply management and others. Standing firm in defence of our sectors while also seeking common ground where mutual benefit can be achieved will unlock new opportunities for communities and regions across North America, ultimately improving the daily lives of all North Americans.

Only with a rural lens applied throughout, not as an afterthought, will our mutual goals of productivity and economic growth be met. 

This approach reflects a growing consensus across political and economic leadership that Canada’s next phase of growth will depend on rural competitiveness. Integrating that lens into CUSMA’s framework would provide a clear, practical model for economic growth.

Conclusion

Our request here is consistent with the recent objectives set out by the government: strengthening trade partnerships, building nation-shaping infrastructure, reducing costs for Canadians, growing skilled trades, leveraging AI and catalyzing private investment. 

To enhance CUSMA’s relevance to all regions of Canada and strengthen North American competitiveness, the Rural Prosperity Group recommends that the government formally adopt a rural lens during its review of CUSMA, in any negotiations and implementation talks with its North American partners and more generally moving forward.

These actions will reinforce Canada’s leadership in promoting regionally balanced trade policy — rural strong trade policy — ensuring the benefits of CUSMA are felt in every community, from major metropolitan centres that benefit from what rural Canada produces to the regional and rural heartlands that power our shared prosperity.