The Trump administration on Wednesday declined to renew its trade pact with Mexico and Canada, more formally known as the United States-Mexico-Canada Agreement (USMCA).
United States Trade Representative (USTR) Jamieson Greer said in a written statement:
The Agreement between the United States of America, the United Mexican States, and Canada (USMCA or “Agreement”) requires the USMCA Free Trade Commission, composed of government representatives of each Party, to conduct a joint review of the Agreement on July 1, 2026. In accordance with the Agreement, the United States, Mexico, and Canada met virtually today to discuss the operation of the USMCA. The United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed. The United States will continue to engage with Mexico and Canada to address the Agreement’s shortcomings and our trade deficits with these countries. However, the Agreement remains in force pending resolution of these issues or until the Agreement’s termination. As previously announced, the United States will meet with Mexico the week of July 20 for a third round of bilateral negotiations related to the USMCA joint review.
Wednesday’s decision means that the USMCA will stay in effect for another ten years, given that no member withdraws from the trade pact. However, it also means that yearly trade negotiations could result.
A senior administration official said that Trump “chose not to rubber stamp a USMCA renewal without addressing existing issues.”
“In other words, the United States did not agree to renew the USMCA in its current form. So, as a result, the USMCA is not renewed.”
The official said that the president’s primary concern relates to America’s trade deficits with Canada and Mexico.
The Trump official said that the president “has already changed the nature of the U.S.-Canada-Mexico trading relationship” before Wednesday’s deadline.
Read the full article here