With US-Canada trade talks on hold, American officials have presented their clearest demands yet to maintain free trade under the United States-Mexico-Canada Agreement (USMCA). The proposals, outlined by US Trade Representative Jamieson Greer during a Congressional hearing on Wednesday, focus on market access, digital media, and energy disputes.
One of the primary US demands is increased access to Canada’s dairy market. Canada operates a supply-management system that strictly regulates dairy production and imports to support local farmers. The US argues this system limits market access for its dairy products and has accused Canada of dumping nonfat milk solids at low prices internationally. While Canada imported $1.1 billion of US dairy in 2024, the US seeks expanded quotas and reduced restrictions.
Greer also raised concerns about Canadian laws affecting streaming services. The 2023 Online Streaming Act requires platforms like Netflix and Spotify to pay to promote Canadian content and gives regulators authority to impose penalties. The US contends the law discriminates against American tech and media firms. Greer also cited the Online News Act, which obliges tech companies such as Google and Meta to pay Canadian news outlets. Meta has blocked news access for Canadian users on Facebook and Instagram in protest.
The US is pressing Canada to lift its provincial bans on American liquor, imposed in response to President Trump’s tariffs on Canadian goods. Most provinces, except Alberta and Saskatchewan, removed US alcohol from store shelves, causing significant sales declines for American producers. Greer said reinstating US liquor sales would be a key condition for extending the USMCA.
Other US concerns include electricity trade and regulatory barriers. Greer highlighted a dispute between Montana-based electricity providers and Alberta, alleging that Alberta’s non-profit grid operator restricts access for American suppliers. Alberta officials have denied discriminatory treatment, noting that the province continues to import more electricity from Montana than from neighboring Canadian provinces.
Greer also mentioned “discriminatory procurement measures” in Ontario, Quebec, and British Columbia, along with complex customs registration procedures that hinder US exports.
While the USMCA has been in effect since 2020 and both Canada and Mexico support its continuation, President Trump has suggested the US could leave the agreement. Greer told Congress that while the pact has been “successful to a certain degree,” modifications are needed to address ongoing trade frictions.
The latest US demands underscore the administration’s push to address long-standing trade imbalances, with particular focus on dairy, digital services, and energy. The proposals set the stage for renewed negotiations aimed at keeping the North American trade framework intact while responding to both American and Canadian economic interests.
