Technology

Canada's Tech Leaders Sound the Alarm: New US Trade Committee Missing Digital Economy Expertise

As Canada prepares for crucial CUSMA negotiations, Canadian tech innovators slam federal advisory group for excluding founders, startups, and digital sector voices.

Canada's Tech Leaders Sound the Alarm: New US Trade Committee Missing Digital Economy Expertise
(BetaKit / File)

Canada's newly formed economic advisory committee for US relations is drawing sharp criticism from the country's technology and innovation sectors, with industry leaders warning that excluding digital economy expertise could cost the nation dearly in upcoming trade negotiations.

Prime Minister Mark Carney unveiled the 24-member advisory group this week, replacing the Council on Canada-US Relations established under former Prime Minister Justin Trudeau. The timing is significant: the committee will help guide Canada through a contentious trade dispute with the United States and prepare for a critical review of the Canada-US-Mexico Agreement (CUSMA) scheduled for July.

Yet the committee's composition—heavy on traditional industries like automotive, manufacturing, and natural resources, but devoid of tech founders, startup executives, or innovation economy voices—has sparked immediate backlash from leading Canadian tech organizations.

"This Is an Old-Economy List"

"It's disappointing to see that there is not a single founder, startup CEO, tech entrepreneur, VC, or innovation-economy builder on this committee," said Lucy Hargreaves, co-founder and CEO of Build Canada, in a public statement. "This is an old-economy list."

Patrick Searle, CEO of the Council of Canadian Innovators (CCI), was equally direct: "We urge the federal government to add expertise to this council that reflects the 21st-century economy."

Searle and other tech sector advocates argue that the omission represents a dangerous blind spot. The committee excludes representatives from firms "building, owning, and exporting the intangible assets that now define global trade," Searle said—assets including intellectual property, data, algorithms, and digital platforms.

Digital Trade at Stake in CUSMA Negotiations

While US tariffs have hammered traditional Canadian manufacturing and natural resources sectors, critics point out that digital trade, telecommunications, and intellectual property rights are all covered under CUSMA. That makes the absence of tech sector representation particularly glaring.

"The [US] is shaping the rules for data, platforms, and algorithms through procurement, standards, and trade policy, while Canada remains reactive," Searle warned. "This is about having people who understand an economy driven by intangible assets."

The Canadian Shield Institute's managing director, Vass Bednar, highlighted another concern: that at least one committee member—Canadian Chamber of Commerce president and CEO Candace Laing—represents US businesses operating in Canada that are also supporting US President Donald Trump's agenda.

"Canada got CUSMA wrong in 2018 by allowing the US to shape critical digital and IP provisions. We've been in this exact spot before. If we all want a deal that's in the best interest of Canada, let's not repeat the past."

Not Everyone Agrees

However, the criticism isn't universal. Sharan Kaur, a former Liberal staffer now lobbying on behalf of SpaceX and TikTok, called the outcry "misguided." She argued that manufacturing—not digital services—bears the brunt of US tariffs, and that the digital economy operates mostly barrier-free.

"This is about trade policy, and manufacturing takes the real hit, especially autos," Kaur said. "The digital economy is mostly barrier-free aside from labour mobility. We don't need tech/founder voices on everything."

A federal government spokesperson responded by noting that the committee "includes representatives from a wide range of backgrounds" and is part of broader consultation mechanisms the government has established with industry, labour, provincial governments, and elected officials.

The CUSMA Reckoning

Tech leaders say Canada has a history of getting these deals wrong. Searle pointed to the original 2018 CUSMA negotiation as a cautionary tale, arguing that Canada allowed the US to dictate "critical digital and IP provisions" to its own disadvantage.

With the trade agreement up for review this summer, advocates warn that Canada must rebuild its negotiating position around the digital economy—or risk repeating those mistakes as a more tech-dependent global marketplace determines who captures value in the years ahead.

This article is based on reporting from BetaKit. Read the full story at BetaKit.

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