2024Volume 9, Issue 2 - Winter 2024

Q&A with Consul Rebecca Molinoff on U.S.-Canada Trade

Q: What is the role of the U.S. Consulate in Winnipeg, and what is your role as the Consul?

A: The Consulate in Winnipeg plays a role in extending the reach of U.S. diplomatic efforts in Manitoba. We are a smaller post, but our location is intended to strategically enhance U.S. engagement with local communities, businesses, governments, and Indigenous communities. We meet with a variety of people, businesses, and organizations to learn about the issues in Manitoba, and where they might intersect with U.S. issues. 

Our primary focus is on facilitating trade and investment and fostering cultural ties and exchanges. Of course, the United States and Canada are so integrated that often these exchanges happen seamlessly. But we work to continue to build relationships and find any areas we can help improve. 

Q: When did you arrive in Winnipeg? What was your background prior to arrival?

A: My family and I are new to Winnipeg – we arrived earlier this fall and have enjoyed getting to know the city. I grew up in Ohio, just across Lake Erie from Ontario. I have fond memories of visiting Canada growing up and now I get to share another part of Canada with my family. 

Prior to Winnipeg, we were in Bucharest, Romania, where I served as the Acting Deputy Political Counselor at the U.S. Embassy. I’ve also served overseas in Jamaica and Moldova, with stints in London and at the U.S. Mission to the United Nations in New York. I’ve also worked in Washington D.C. as the Latvia and Lithuania Desk Officer. Before joining the State Department, I worked in finance in London.

I’m happy to bring all my past experiences to work on the U.S.-Canada relationship. 

Q: How big is the U.S.-Canada trading relationship? 

A: Canada is the United States’ top trading partner, with goods and services trade totaling US$922 billion in 2023. That works out to an astounding US$2.5 billion in cross-border trade daily, roughly C$3.4 billion. This robust trade partnership supports millions of jobs on both sides of the border and encompasses a wide range of industries, from automotive and agriculture to technology and energy. Canada is the largest export market for the United States, and the U.S. is Canada’s largest trading partner. In 2023, 73 per cent of Canada’s goods and services exports were destined for the United States. Thirty-six U.S. states have Canada has their number one export destination for U.S. goods. 

This deep economic integration is facilitated by shared values, geographic proximity, and strong political ties, making the U.S.-Canada trade relationship a cornerstone of both nations’ economies.

Q: What work do you and your colleagues do to support and enhance that trading relationship between Canada and the United States, particularly in manufacturing?

A: The breadth and depth of the bilateral relationship between Canada and the United States is unparalleled. There is a cross-country network of U.S. Consulates, Consulates General, and the Embassy in Ottawa, meaning that we can connect with Canadians in every province and territory. 

For example, we have Foreign Commercial Service (FCS) offices across the country. Our FCS colleagues work with U.S. businesses interested in working in Canada, but also facilitate connections with Canadian businesses, such as through the Department of Commerce’s SelectUSA program. Each year, FCS brings Canadian businesses to Washington D.C. as part of SelectUSA’s conference to build business-to-business connections in a variety of sectors. Next year’s SelectUSA Summit will be from May 11-14, 2025, in Washington D.C.

Apart from meeting directly with businesses, my colleagues and I also participate in trade-related events or panel discussions to raise awareness of policies or opportunities in the United States and how Canadian businesses might benefit. 

Q: What are some policies the United States has to improve supply chain resilience?

A: The United States is taking historic action to strengthen supply chains and reduce costs, increase competitiveness, and reduce emissions through billions of dollars of Bipartisan Infrastructure Law investments. The funding includes US$17 billion for port infrastructure and waterways and US$25 billion for airports to address repair and maintenance backlogs, reduce congression and emissions near ports and airports, and drive electrification and other low-carbon technologies. The law also authorizes US$110 billion in additional funding to repair our roads and bridges to support the movement of goods across the supply chain. These investments also benefit any Canadian companies that look to do business in the United States by reinforcing our supply chain resiliency. We have also prioritized work on critical minerals to build a secure supply chain for North America. This includes working with dozens of Canadian mining companies to discuss funding opportunities through the Department of Defense, Defense Production Act, with six Canadian companies already receiving over
US$88 million in awards for projects on both sides of the border.

Q: What opportunities are there for Canadian businesses in the United States?

A: Canadian businesses have a wealth of opportunities in the United States, thanks to the strong economic ties and geographic proximity between the two nations. Key sectors where Canadian companies can thrive include technology, energy, automotive, agriculture, and healthcare. The United States-Mexico-Canada Agreement (USMCA) has further streamlined trade and investment, making it easier for Canadian businesses to enter and expand in the U.S. market.

The USMCA, or CUSMA in Canada, is the cornerstone of our regional economic future. It establishes the rules of the road for over US$1.8 trillion in trade among the United States, Canada, and Mexico each year. 

The U.S. offers a large and diverse consumer base, advanced infrastructure, and a business-friendly environment, which are significant advantages for Canadian enterprises. Additionally, the cultural similarities and shared language reduce barriers to entry, allowing for smoother operations and marketing efforts. For Canadian businesses looking to grow, the U.S. market presents a dynamic and lucrative landscape full of potential.

Q: On the CUSMA, or USMCA, agreement – what are the strategic priorities for the 2026 review of the agreement?

A: We are mindful of the 2026 review and some discussions have started internally in the United States. The USMCA is not a static agreement, it is dynamic, and there is meant to be open reflection along the way by all parties about how it is working overall. Ahead of the 2026 review, the USMCA Implementation Act requires the U.S. Trade Representative (USTR) to solicit public comments and report to relevant Congressional committees. The USTR will publish a federal register notice in Fall 2025 regarding the review and hold a public hearing. Just as the USMCA modernized our trading relationship from 2020 onwards, all parties can continue to look for improvements to ensure the agreement keeps up with the pace of our economies. 

Q: With the change in U.S. presidential leadership in 2025, what’s next for the U.S.-Canada relationship?

A: First, I would not want to presume to speak for an incoming administration because the President-elect was elected by the American public; he has the right to make his own decisions. 

While I can’t comment about what might happen, I can say that, as we speak, there continues to be exceptional work done between our countries as a result of those close ties: the work that ensures safe and efficient travel and trade across our shared border; the work that drives our economies; the work that keeps our countries safe and also defends our shared values around the world; and the work that combats climate change. No matter who is in leadership, this work and the enduring relationship between the United States and Canada is undeniable, as it’s not just between our federal governments. It’s between our states and provinces, our businesses, and person-to-person. As a result of these close relations, I’m confident that the United States and Canada will remain engaged neighbours, prosperous partners, and stalwart allies.