US trade representative Jamieson Greer has offered the clearest public outline yet of what Washington wants from Canada as a formal review of the North American free trade pact—the USMCA—gets under way. Speaking to a Congressional committee this week, Greer said the agreement has been “successful to a certain degree,” but argued that changes are needed if the deal is to continue in its current form.
The remarks land at a delicate moment for cross-border commerce. Trade talks between the two countries remain on hold, and President Donald Trump has repeatedly signalled he may be willing to walk away from the USMCA—an outcome that would inject uncertainty into supply chains that have been tightly integrated for decades.
Greer’s requests focus on three areas that have long been politically sensitive in Ottawa and in provincial capitals: Canada’s dairy supply-management system, a Trudeau-era law regulating online streaming platforms, and provincial restrictions on selling American alcohol that were imposed in response to US tariffs.
Why the USMCA review matters now
The USMCA, which replaced NAFTA and took effect in 2020, includes periodic review provisions that allow the three partners—the United States, Canada and Mexico—to assess whether the pact is meeting its goals and whether changes are needed. Both Canada and Mexico have said they want the agreement extended, viewing it as a stabilizing framework for trade and investment.
But the review also creates leverage for Washington to press for concessions—especially in sectors where US officials argue market access remains constrained. Greer told lawmakers that the US is not satisfied with the status quo, and that “changes must be made” for the agreement to continue.
Dairy: the oldest flashpoint in US-Canada trade
At the top of the list is Canada’s dairy supply-management system, which controls production through quotas and restricts imports to support domestic farmers. US officials have long argued that the system limits meaningful market access even when tariff-free quotas exist on paper.
President Donald Trump has repeatedly highlighted the issue, including in a letter earlier this year threatening Canada with a blanket 35% tariff rate. In that letter, he accused Canada of charging “extraordinary tariffs” on US dairy—“up to 400%.”
Canada’s system can mean higher consumer prices domestically, but it has strong political support in key provinces. Under the USMCA, some US dairy products can enter Canada tariff-free up to set limits. US officials argue those limits have not been fully utilized due to how the access is administered, and Greer told Congress that Canada must “bolster” access under the agreement.
US complaints about exports and “dumping” claims
Greer also raised concerns about Canada’s exports of “certain dairy products” into the US market. American officials have accused Canada of dumping nonfat milk solids into international markets at low prices, which they say undercuts competition.
Canada’s position has been firm. Prime Minister Mark Carney said in August that dairy supply management is not “on the table” in trade talks. Still, during the last major round of USMCA negotiations in Trump’s first term, Canada agreed to increased access for US dairy at low or zero tariffs—suggesting that incremental concessions, rather than a full overhaul, are the most plausible path forward.
Streaming law: Washington targets Canada’s cultural policy online
Another major demand involves Canada’s Online Streaming Act, passed in 2023 under former prime minister Justin Trudeau. The law requires large streaming platforms—such as Netflix and Spotify—to contribute financially to Canadian content and to promote that content on their services. It also grants Canada’s broadcast regulator authority to set conditions and impose financial penalties for non-compliance.
Canada has framed the measure as a modernization of cultural policy designed to ensure Canadian creators benefit in a digital media landscape dominated by global platforms. The US, however, argues the law “discriminates” against American technology and media firms. Greer told Congress the policy needs to be revised, though he did not specify what changes Washington expects.
The Online News Act also remains contentious
Greer added that the US is seeking resolution on Canada’s Online News Act, which requires major technology platforms to compensate news outlets when their content appears on those platforms in Canada. The law has been controversial and has triggered disputes with large firms, while Canadian publishers argue it is necessary to sustain journalism in a digital advertising market dominated by global intermediaries.
For Washington, the concern is less about Canada’s stated policy goal and more about whether the rules create an uneven playing field for US-based companies. The issue also intersects with broader debates over platform regulation, competition policy and the future of digital media governance.
US liquor bans: provinces urged to reverse retaliatory measures
Greer’s list also includes a demand that Canadian provinces lift bans on selling American liquor—measures introduced earlier this year in response to sweeping US tariffs imposed by the Trump administration.
Because alcohol distribution and retailing in Canada are largely controlled at the provincial level, these bans can be politically popular and operationally easy to implement. They also create immediate commercial pain for US producers that rely on Canadian shelf space, particularly in border regions. Washington’s position is that such restrictions should be rolled back as part of restoring normal trade conditions.
What happens next for Canada-US trade
Greer’s testimony signals that Washington is preparing to use the USMCA review process to press for concrete, sector-specific changes rather than broad statements of cooperation. For Canada, the challenge is that each of the US demands touches domestic political nerves: dairy protections are a red line for influential farm constituencies, streaming rules are tied to cultural sovereignty, and liquor bans are controlled by provinces responding to tariff pressure.
With both countries publicly staking out positions—and with the US president openly questioning the value of the pact—the next phase is likely to involve a mix of technical negotiations, political bargaining and pressure campaigns aimed at domestic audiences on both sides of the border.
For businesses that depend on predictable cross-border rules, the immediate takeaway is that the USMCA may be entering a more contentious chapter, with market access, digital regulation and retaliatory trade measures all back on the negotiating table.