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As uncertainty remains in North American trade relations, one automotive player said the Canada-United States-Mexico Agreement (CUSMA) is “critical” to keeping the industry well integrated.
Speaking to Global News at the Calgary Stampede on Sunday, Jack Uppal, president and managing director of General Motors Canada said CUSMA protects the North American industry from other global players and “makes it stronger.”
Last week, US President Donald Trump said his country would not renew the treaty in its entirety until 2042 (the termination date for a potential 16-year extension of the treaty) and would instead require an annual review. If an extension is not agreed, the agreement will end in 2036.
Last month Trump stated that the US was “better off without” CUSMA, and he would even prefer it to be “terminated.” When asked by Global News, US Ambassador to Canada Pete Hoekstra did not answer whether the US government was considering canceling the agreement, which any party can do with six months’ formal notice.
“All options are on the table,” Hoekstra said. “[Termination] is clearly permitted in the agreement.”
CUSMA has largely protected Canada and Mexico from the impact of tariffs imposed by the Trump administration. Uppal said tariffs are something that GM has been watching closely, but so far the company has been able to protect its market price point.
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“What we really need to focus on is making sure that we keep our customers in mind and we manage the affordability part,” he said.
GM finished the first half of 2026 as Canada’s best-selling automaker, with a market share of 15.4 percent and deliveries of 148,640 vehicles. This accounts for more than 30 percent year-on-year growth in electric vehicle (EV) sales. Even in Alberta, which has the lowest rate of electric vehicle adoption, GM’s electric vehicle sales increased by about 30 percent.
“We are in an environment full of uncertainty from a geopolitical standpoint; we face tariff headwinds, but the crux of the issue is affordability,” Uppal said. “So that’s where I’m going to really respond to those challenges. We have to work harder and really focus on making sure that we deliver value across our product portfolio to customers to drown out the noise that no one can change.”
Despite shifting production significantly to the US, Uppal said many of GM’s values still resonate with Canadian consumers.
“We see consumers really demanding more choice, more technology, more connectivity,” he said. “Choice is very important.”
Uppal said he was confident the uncertainty surrounding the trade agreement would “sort itself out” as talks between the three countries continue. But Canadian government officials are less sure.
Canada-U.S. Trade Minister Dominic LeBlanc told The Canadian Press that he asked U.S. Trade Representative Jamieson Greer how he intended to structure discussions as part of the annual review. He said the request was made together with Mexican Economy Minister Marcelo Ebrard.
“There was no response at the meeting… It was agreed that we would continue the conversation over the next few weeks,” LeBlanc said.
The annual renewable review process, initiated by the Trump administration, could last up to 10 years. At the end of that term, the agreement will expire if no way forward is found to extend the agreement beyond its 2036 expiration date.
Exactly how the annual review will be conducted remains to be determined.
– with files from Mackenzie Gray, Global News and The Canadian Press
© 2026 Global News, a division of Corus Entertainment Inc.
