Alberta
The USMCA’s self-destruct button: review clause conjures fears of 2018 all over again
WASHINGTON — It’s been less than three years since the U.S.-Mexico-Canada Agreement replaced NAFTA as the law of the land in continental trade, and there are already hints of the existential anxiety that preceded it.
That’s because of the so-called “sunset provision,” a clause that reflects the lingering working-class distrust of globalization in the U.S. that helped Donald Trump get elected president back in 2016.
Article 34.7 of the agreement, the “review and term extension” clause, establishes a 16-year life cycle that requires all three countries to sit down every six years to ensure everyone is still satisfied.
That clock began ticking in the summer of 2020. If it runs out in 2026, it triggers a self-destruct mechanism of sorts, ensuring the agreement — known in Canada as CUSMA — would expire 10 years later without a three-way consensus.
For Canada, the sunset provision “is a minefield,” said Lawrence Herman, an international trade lawyer and public policy expert based in Toronto.
“It is certainly not a rubber-stamping exercise — far from it.”
Of particular concern is the fact that the provision doesn’t spell out in detail what happens if one of the parties indicates that it won’t sign off on extending the deal without significant changes to the terms.
“The concern is that this could mean, in effect, that we’ll be into a major renegotiation of CUSMA in 2026,” by which time the political landscape in both the U.S. and Mexico could look very different, Herman said.
“What happens then? The government and business community need to be thinking about this and start preparing the groundwork and doing contingency planning now.”
The deal as it stands is hardly perfect, if the number of disputes is any indication.
In the 33 months since USMCA went into effect in July 2020, 17 disputes have been launched among the three countries, compared with a total of 77 initiated over the course of NAFTA’s 25-year lifespan.
The U.S. remains unhappy with how Canada has allocated the quotas that give American dairy producers access to markets north of the border. Canada and Mexico both took issue with how the U.S. defined foreign auto content. And Canada and the U.S. oppose Mexico favouring state-owned energy providers.
The Canada-U.S. disputes are likely to be on the agenda when Prime Minister Justin Trudeau sits down later this week in Ottawa with President Joe Biden, his first official visit to Canada since being sworn in two years ago.
“The president’s really excited about doing this, about going up there and really going to Ottawa for no other purpose than the bilateral relationship,” National Security Council spokesman John Kirby told the White House briefing Monday.
Prior meetings between the two have typically been on the margins of international summits or at trilateral gatherings with their Mexican counterpart, Andrés Manuel López Obrador.
Kirby cited climate change, trade, the economy, irregular migration and modernizing the continental defence system known as Norad as just some of “a bunch of things” the two leaders are expected to talk about.
“He has a terrific relationship with Prime Minister Trudeau — warm and friendly and productive.”
Trade disputes notwithstanding, the overwhelming consensus — in Canada, at least — is that USMCA is vastly better than nothing.
“I don’t want to be alarmist about this, but we cannot take renewal for granted,” said Goldy Hyder, president and CEO of the Business Council of Canada, after several days of meetings last week with Capitol Hill lawmakers.
Constantly talking up the vital role bilateral trade plays in the continent’s continued economic health is a cornerstone of Canada’s diplomatic strategy. The message Hyder brought home from D.C.? Don’t stop now.
“We met several senators, we met people from the administration, and their message was, ‘Be down here. Make your case. Continue to remind Americans of the role that Canada has in their economy,'” he said.
“We’ve got to … be a little less humble in the United States and start reminding Americans just how much skin in the game that they have in Canada.”
That can be a challenging domestic political truth in the U.S., where deep-seated resentment over free trade in general and NAFTA in particular metastasized in 2016 and persists to this day.
Biden likes to put a blue-collar, Buy American frame around policy decisions. His original plan to advance electric-vehicle sales saved the richest incentives for vehicles assembled in the U.S. with union labour.
Aggressive lobbying by Canada helped avert a serious crisis for Canada’s auto sector; the Inflation Reduction Act that Biden ultimately signed included EV tax credits for vehicles assembled in North America.
For many, it was a cautionary tale about the importance of arguing Canada’s interests in Washington.
A strong U.S. depends on a strong Canada, said Rob Wildeboer, executive chairman and co-founder of Ontario-based auto parts supplier Martinrea International Inc., who took part in last week’s D.C. meetings.
“The USMCA and the ability to move goods across borders is extremely important to us, it’s extremely important to our industry, it’s extremely important to this country, and it’s a template for the things we can do together with the United States,” Wildeboer said.
“In order for the U.S. to be strong, it needs strong neighbours, and Canada’s right at the top of the list.”
This report by The Canadian Press was first published March 21, 2023.
James McCarten, The Canadian Press
Alberta
How economic corridors could shape a stronger Canadian future
Ship containers are stacked at the Panama Canal Balboa port in Panama City, Saturday, Sept. 20, 2025. The Panama Canals is one of the most significant trade infrastructure projects ever built. CP Images photo
From the Canadian Energy Centre
Q&A with Gary Mar, CEO of the Canada West Foundation
Building a stronger Canadian economy depends as much on how we move goods as on what we produce.
Gary Mar, CEO of the Canada West Foundation, says economic corridors — the networks that connect producers, ports and markets — are central to the nation-building projects Canada hopes to realize.
He spoke with CEC about how these corridors work and what needs to change to make more of them a reality.
CEC: What is an economic corridor, and how does it function?
Gary Mar: An economic corridor is a major artery connecting economic actors within a larger system.
Consider the road, rail and pipeline infrastructure connecting B.C. to the rest of Western Canada. This infrastructure is an important economic corridor facilitating the movement of goods, services and people within the country, but it’s also part of the economic corridor connecting western producers and Asian markets.
Economic corridors primarily consist of physical infrastructure and often combine different modes of transportation and facilities to assist the movement of many kinds of goods.
They also include social infrastructure such as policies that facilitate the easy movement of goods like trade agreements and standardized truck weights.
The fundamental purpose of an economic corridor is to make it easier to transport goods. Ultimately, if you can’t move it, you can’t sell it. And if you can’t sell it, you can’t grow your economy.
CEC: Which resources make the strongest case for transport through economic corridors, and why?
Gary Mar: Economic corridors usually move many different types of goods.
Bulk commodities are particularly dependent on economic corridors because of the large volumes that need to be transported.
Some of Canada’s most valuable commodities include oil and gas, agricultural commodities such as wheat and canola, and minerals such as potash.
CEC: How are the benefits of an economic corridor measured?
Gary Mar: The benefits of economic corridors are often measured via trade flows.
For example, the upcoming Roberts Bank Terminal 2 in the Port of Vancouver will increase container trade capacity on Canada’s west coast by more than 30 per cent, enabling the trade of $100 billion in goods annually, primarily to Asian markets.
Corridors can also help make Canadian goods more competitive, increasing profits and market share across numerous industries. Corridors can also decrease the costs of imported goods for Canadian consumers.
For example, after the completion of the Trans Mountain Expansion in May 2024 the price differential between Western Canada Select and West Texas Intermediate narrowed by about US$8 per barrel in part due to increased competition for Canadian oil.
This boosted total industry profits by about 10 per cent, and increased corporate tax revenues to provincial and federal governments by about $3 billion in the pipeline’s first year of operation.
CEC: Where are the most successful examples of these around the world?
Gary Mar: That depends how you define success. The economic corridors transporting the highest value of goods are those used by global superpowers, such as the NAFTA highway that facilitates trade across Canada, the United States and Mexico.
The Suez and Panama canals are two of the most significant trade infrastructure projects ever built, facilitating 12 per cent and five per cent of global trade, respectively. Their success is based on their unique geography.
Canada’s Asia-Pacific Gateway, a coordinated system of ports, rail lines, roads, and border crossings, primarily in B.C., was a highly successful initiative that contributed to a 48 per cent increase in merchandise trade with Asia from $44 million in 2006 to $65 million in 2015.
China’s Belt and Road initiative to develop trade infrastructure in other countries is already transforming global trade. But the project is as much about extending Chinese influence as it is about delivering economic returns.
Piles of coal awaiting export and gantry cranes used to load and unload containers onto and from cargo ships are seen at Deltaport, in Tsawwassen, B.C., on Monday, September 9, 2024. CP Images photo
CEC: What would need to change in Canada in terms of legislation or regulation to make more economic corridors a reality?
Gary Mar: A major regulatory component of economic corridors is eliminating trade barriers.
The federal Free Trade and Labour Mobility in Canada Act is a good start, but more needs to be done at the provincial level to facilitate more internal trade.
Other barriers require coordinated regulatory action, such as harmonizing weight restrictions and road bans to streamline trucking.
By taking a systems-level perspective – convening a national forum where Canadian governments consistently engage on supply chains and trade corridors – we can identify bottlenecks and friction points in our existing transportation networks, and which investments would deliver the greatest return on investment.
Alberta
When Teachers Say Your Child Has Nowhere Else to Go
When educators argue that children who don’t fit their system should have nowhere else to go, you’re witnessing institutional self-interest dressed up as social justice.
A petition is making its way through Alberta that could fundamentally reshape education in the province, and not for the better. The “Alberta Funds Public Schools” initiative, launched by Calgary high school teacher Alicia Taylor, asks a deceptively simple question: “Should the Government of Alberta end its current practice of allocating public funds to accredited independent (private) schools?”
Taylor isn’t just any teacher. She’s a Calgary district representative on the Alberta Teachers’ Association’s governing council. And while the ATA has been careful to maintain that this is Taylor’s personal initiative, they’ve conspicuously failed to repudiate it. In fact, ATA president Jason Schilling has publicly stated that members “take exception” to public dollars going to private schools, while simultaneously claiming the association’s policy isn’t “against private schools.” This is the kind of rhetorical contorsions that deserves scrutiny.
The timing is telling. The petition was approved just as 51,000 Alberta teachers launched the province’s first-ever province-wide strike. Taylor called this “a happy accident,” noting that striking teachers now have “a little more spare time than normal” to collect signatures. When your “personal initiative” coincidentally launches during a labor action and benefits from union members’ sudden availability, reasonable people might wonder how personal it really is.
To be fair, let’s present the strongest version of the argument Taylor and her supporters are making. They claim that Alberta spends the least per student in Canada on public education while funding private schools at 70%, the highest rate in the country. This creates what they see as a perverse incentive structure: public money flowing to selective institutions while universal public schools struggle with overcrowding and teacher shortages.
The math seems straightforward: $461 million currently goes to independent schools serving about 50,000 students. Redirect that money to the public system serving over 600,000 students, and you could fund thousands of teachers and educational assistants. You could reduce class sizes. You could provide more support for struggling students.
They argue this is about fairness and democratic accountability. Taxpayers fund education for the common good, and that investment should go to schools that must accept every student, not selective alternatives that can charge tuition on top of public subsidies. Private schools exist and thrive in Ontario without public funding. Why should Alberta be different?
Moreover, they contend, the current system subsidizes exit from the public system, creating a vicious cycle where families with resources opt out, taking their advocacy and engagement with them, leaving behind an increasingly residualized public system serving the most vulnerable students.
Underlying much of this argument is a class-based resentment: the notion that some families can access alternatives amounts to unfair privilege. This framing reveals more about the advocates than about education policy. Envy is never a good look in educators. When teachers’ unions frame educational choice as a problem because some families have options others don’t, they’re not arguing for equity. They’re arguing for enforced equality of limitation, where if not everyone can have something, no one should.
It sounds compelling. It’s also dangerously wrong.
Let’s start with the most fundamental flaw in this argument: taking the money doesn’t make the students disappear. Nearly 50,000 students attend independent schools in Alberta, plus another 8,000 in private early childhood programs. These children don’t vanish if funding is eliminated. They flood into a public system that petition supporters themselves admit is already overcrowded. The math is straightforward: forcing these students back into public schools would cost taxpayers an additional $300 million, more than the government’s most recent settlement offer to teachers. This is about forcing conformity at massive cost, while improving nothing.
But the financial argument, while important, pales beside the human cost. Consider what this petition really proposes: eliminating educational options for approximately 80% of independent school families whose income is at or below the provincial average. These aren’t wealthy elites. They’re middle-income families making sacrifices to access education that works for their children.
The class warfare rhetoric of the petition obscures this reality. When advocates frame school choice as privilege, they ignore that Alberta’s funding model specifically makes choice accessible to families who couldn’t otherwise afford it. Eliminating this doesn’t level the playing field. It simply ensures that only the truly wealthy retain educational options.
Here’s what makes this proposal particularly egregious: its devastating impact on neurodiverse learners. Many of the fastest-growing independent schools in Alberta serve students with special learning needs. These are children who struggled, or failed, in standard public school classrooms. They’re students with ADHD who need smaller classes and more movement. They’re autistic students who thrive with structured routines and specialized approaches. They’re kids with dyslexia who need intensive, systematic literacy intervention that their public school couldn’t provide.
The petition’s supporters blithely suggest these students should return to the very system that couldn’t serve them. When teachers are striking over classroom complexity and overcrowding, the proposed solution is to add tens of thousands more students, many with intensive needs, to those same classrooms. This is illogical and cruel.
The ATA argues that a “well-funded public system should be meeting the needs of those kids in the first place.” Should. That’s doing a lot of work in that sentence. Yes, the public system *should* meet every child’s needs. But it doesn’t. And there’s no evidence that simply throwing more money at the problem will change that.
Whatever challenges Alberta’s public schools face, it’s naive and simplistic to believe more money will fix them. There is no study in the world that connects higher teacher wages with better educational outcomes. The problems in public education are complex, structural, and often resistant to solutions that amount to “spend more.”
Neurodiverse students aren’t one-size-fits-all. A student who thrives in a Montessori environment with hands-on learning and self-directed exploration might struggle in a traditional classroom. A student who needs the structure and explicit instruction of a classical education might flounder with inquiry-based learning. An autistic student might do brilliantly in a small school with consistent routines and sensory-aware design, but melt down daily in a crowded comprehensive school.
Eliminating funding for independent schools eliminates options, period. It tells families: your child must fit into our system, or fail. For neurodiverse learners, this is often a sentence to years of struggle, frustration, and educational failure.
But this goes beyond neurodiversity. It’s about every kind of educational diversity. Alberta’s independent schools include French immersion programs, Indigenous-focused schools, classical academies, arts-intensive programs, schools with specific pedagogical approaches, faith-based education reflecting diverse religious traditions, and schools serving new Canadian communities with specific cultural and linguistic needs.
This is educational pluralism: the recognition that in a diverse democracy, different families have different values, different children have different needs, and no single approach serves everyone well. The ATA’s position, however much they try to obscure it, is that this diversity is a problem to be solved. That public money should only support one kind of school: the government-run, union-staffed, standardized public school. Every other option should be available. if at all, only to families wealthy enough to afford full-freight tuition.
This entrenches inequality rather than reducing it. Right now, Alberta’s funding model democratizes choice. A middle-income family whose child isn’t thriving in public school has options. Eliminate public funding, and those options exist only for the wealthy. The result is a rigid two-tier system where the rich can escape and everyone else is trapped.
The envious framing of the ATA’s position becomes clearer here. They see that some families can access alternatives and conclude the problem is the alternatives, not the lack of universal access. This is the logic of enforced mediocrity: if we can’t give everyone excellent options, we’ll eliminate the excellent options that exist. It’s a race to the bottom masquerading as equity.
Let’s be honest about what’s really happening here. The ATA represents teachers in public schools. It has no role in independent schools. Every student in an independent school is a student in a classroom where the union has no power, no collective bargaining rights, and no ability to call strikes that disrupt families.
When Taylor notes that families with children in independent schools experienced “business as usual” during the strike while public school families scrambled for childcare, she’s unwittingly making the case against her own position. Educational diversity means resilience. It means not every family is held hostage to a single system’s labor disputes.
The union has an institutional interest in maximizing enrollment in schools where it holds power. This petition advances that interest. That’s no coincidence. The careful distance the ATA maintains (“It’s not our petition, but we agree with its goals”) is transparent political cover.
Here’s the assumption underlying this entire petition: if we eliminate alternatives and force all students into the public system, somehow that system will improve. This is supremely naive. Suppressing educational variety and choice won’t improve the ails of the public system. It will simply trap more students in whatever problems already exist. If public schools are struggling with classroom management, adding students who left won’t help. If they’re struggling with diverse learning needs, adding students with intensive special needs won’t help. If they’re struggling with overcrowding, adding 50,000 more students certainly won’t help.
The theory seems to be that if we eliminate choice, the system will be forced to improve to meet everyone’s needs. But that’s not how monopolies work. When you have captive customers with no alternatives, the pressure to improve actually decreases. Competition, choice, and the possibility of exit are what create pressure for systems to innovate and serve their clients well.
Educational diversity makes everyone better off. It provides options for students who struggle in traditional settings. It allows innovation and experimentation. It respects that families have different values and priorities. It creates competitive pressure that benefits all schools. And it even costs taxpayers less because families contribute tuition on top of partial public funding.
The Taylor petition claims to be about fairness and adequate resources. In reality, it’s about control and conformity. It would devastate neurodiverse learners, reduce educational variety, eliminate options for middle-income families, and force tens of thousands of students into an already overcrowded system, all while costing taxpayers hundreds of millions more.
And for what? The promise that somehow, magically, removing alternatives will make the remaining system better? That’s wishful thinking dressed up as education policy.
The ATA may not have officially endorsed this petition, but they haven’t repudiated it either. Their silence is instructing, considering that no one would benefit most from the success of such petition than the ATA. And Alberta families, especially those with children who learn differently, should pay attention to what that silence means for their future choices.
When Taylor launched this petition as a “Calgary district representative on the Alberta Teachers’ Association’s governing council,” whatever the pretense of privacy, she wasn’t acting in a vacuum. When the ATA president publicly supports the petition’s goals while maintaining plausible deniability about its origin, that’s a political strategy. When striking teachers use their “spare time” to collect signatures for a petition that would eliminate non-union schools, that’s campaign coordination.
The envious rhetoric about “privilege” and “fairness” obscures what this petition does. It doesn’t help struggling students. It doesn’t improve public education. It doesn’t create equity. It eliminates options for middle-income families. It’s the worst kind of class politics: making everyone worse off in the name of equality.
Educational diversity is a necessity for a functioning pluralistic society. It’s essential for neurodiverse learners who don’t fit the standard mold. It’s crucial for families who want education that reflects their values. And it’s fundamental to the idea that parents, not government bureaucrats or union officials, should have the primary say in their children’s education.
Any proposal to eliminate educational diversity, whatever its rhetorical packaging, deserves to fail. And Albertans should see this petition for what it truly is: an institutional power play to eliminate competition and force conformity, motivated more by envy than by any genuine concern for educational outcomes.
The stakes are high. Educational freedom, once lost, is extraordinarily difficult to regain. When educators tell you that children who don’t fit their system should have nowhere else to go, believe them. Then fight back. Alberta families should resist this petition with everything they have.
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