Canada’s ambassador to the United States, Kirsten Hillman, has decided to step down at the end of this year. Hillman has been the linchpin for the last six years. Since her appointment in 2019, she has created a bit of history of her own, being the first woman to assume this position. Her retirement comes at a particularly important juncture. Meanwhile, Canada is preparing for a mid-term review of the United States-Mexico-Canada Agreement (USMCA), which regulates more than 75% of its daily exports to the U.S.
Hillman’s resignation marks the end of an era for Canada, a country that has always depended upon trade. As one of the most trade-dependent countries globally, Canada’s economic landscape is intricately linked to its relationship with the U.S. The new USMCA agreement removes tariffs for most Canadian agricultural exports to the U.S. Now, this atypical but groundbreaking agreement stands poised to be renewed, putting the future of trade dynamics back into question.
In 2017, then Prime Minister Justin Trudeau appointed Hillman to the post of deputy ambassador. She had a profound impact on the direction of Canada-U.S. relations. Prime Minister Mark Carney acknowledged her contributions, stating that Hillman “prepared the foundations for Canada in the upcoming review” of the trade agreement. Carney hopes to see non-U.S. trade double over the next decade. This is an ambitious goal but underscores Canada’s commitment to diversifying its economic relationships.
Close behind is Dominic LeBlanc, Canada’s minister responsible for U.S. trade, who is already chatting up U.S. lawmakers. He has been carrying on talks with Commerce Secretary Howard Lutnick and his Columbia counterpart, Trade Representative Jamieson Greer. These ongoing trade negotiations come on the heels of an ag-related trade war. Negotiations were scuttled by then-President Donald Trump, who became enraged over an advertisement by the Ontario provincial government lobbying against tariffs.
Canada’s trade relationship with the U.S. goes far beyond exports. The first is the fact that the country provides its neighbor with more steel, aluminum, and uranium than any other country in the world. Beyond climate concerns, it is critical to our energy imports. Inland links under nearly three-fourths of U.S. crude oil and almost all electricity from abroad come from Canada — the next choice.
Canada’s strategic importance increases due to its 34 critical minerals and metals. The demand for these resources from the Pentagon is growing as they’re turned to for more and more national security initiatives. The impending midterm review of the USMCA could play a pivotal role for these industries and the overall economic landscape.
Hillman’s impact is already being missed by U.S. honchos. U.S. Ambassador to Canada, Hoekstra, remarked, “I value your friendship and wish you all the best in your next adventure. You will be missed.”
