A recent report by the Office of the United States Trade Representative (USTR) has pinpointed Canada's "Buy Canadian" policy as a major trade irritant between the two nations. The annual document highlights several concerns for the U. S., including provincial regulations surrounding alcohol sales and Canada's procurement policies. The "Buy Canadian" initiative, which aims to prioritize Canadian products and workers in government contracts valued at $25 million or more, is viewed by some U. S. companies as creating unfair barriers.
The USTR report indicates that U. S. firms are facing challenges in competing for Canadian contracts. These challenges include requirements to share sensitive information about their boards of directors and to demonstrate the independence of Canadian subsidiaries from their U. S. parent companies. The U. S. argues that such requirements put American companies at a disadvantage.
Beyond the "Buy Canadian" policy, the USTR report also raises concerns about market access barriers related to provincial liquor control boards, which the U. S. claims "greatly hamper" exports of American wine, beer, and spirits to Canada. High tariffs on U. S. dairy products and delays in aircraft validation in Canada are also cited as ongoing issues. The report notes that U. S. goods exports to Canada totaled $336.5 billion in 2025, a nearly four percent decrease from the previous year.
These trade irritants come at a sensitive time, as Canada and the U. S. prepare for a mandatory review of the Canada-U. S.-Mexico Agreement (CUSMA) in 2026. With trade talks already lagging behind those with Mexico, these disagreements could further complicate negotiations and strain the crucial economic relationship between Canada and its largest trading partner.
