FidelityNow: CUSMA: Why negotiations are an opportunity for Canada

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Hello, my name is Heather Haggerty, and I am a sovereign

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debt analyst.

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My work sits at the intersection of policy analysis

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and fixed income investing.

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I evaluate governments as credit issuers, looking at

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fiscal trajectories, political risk,

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and policy frameworks to identify attractive,

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risk-adjusted returns.

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I focus closely on Canada and Mexico, which makes

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CUSMA far more than just a trade story for me.

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At its core, it provides rules-based

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access to nearly 600 million consumers

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across North America.

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I've been meeting regularly with government officials in

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Washington, Mexico City, and Ottawa to

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discuss priorities as the joint review approaches.

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These conversations reinforce a key point.

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CUSMA is central to the long-term economic strategy

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for North America, CUSMA matters,

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and it matters deeply for Canada.

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We are in a period of structural economic change, with

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deeper integration and shifting geopolitical

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incentives.

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It is best viewed as a continental investment compact

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that anchors supply chains, attracts capital,

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and scales key industries.

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Political incentives to sustain the agreement remain

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strong. Despite polarization,

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risks of disruption, business pressure,

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and voter sensitivity, all push towards cooperation.

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Too often, the focus is on risk and

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preserving the status quo.

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But the status-quo is stability with constraints,

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and negotiations create an opportunity to improve

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it.

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CUSMA requires 75% North American content

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for tariff-free treatment.

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In sectors like EVs, Batteries,

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Critical Minerals, and Components must increasingly come

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from within the region.

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Canada holds major reserves of Lithium,

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Cobalt, and Nickel.

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The key question is not whether or not investment comes

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to North America, but whether Canada captures

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more of it.

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These rules are not just constraints, but

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they're strategic advantages to Canada.

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Canada's AI ecosystem is globally competitive

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and CUSMA enables firms to operate across

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borders without data barriers, expanding

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market access immediately.

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For investors, Canada offers talent,

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stability and seamless access to the U.S.

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Market.

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Looking ahead, Canada can shape the next phase of

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North American integration.

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Building on resources while expanding into

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semiconductors, digital services, and

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clean energy.

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With a proactive strategy, Canada can help define

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the next chapter and position itself at the center

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of North America's economy.