The Trump administration declined on Wednesday to extend the US trade agreement with Mexico and Canada, starting a decade-long clock to wind down the North American trade deal as it seeks changes to try to reshore manufacturing jobs. The decision, revealed after a six-year review of the U.S.-Mexico-Canada Agreement, keeps the agreement in place for another 10 years with annual reviews before it expires, unless the three countries agree to renew it with changes.
US Trade Representative Statement
"The United States did not agree to renew the USMCA in its current form," US Trade Representative Jamieson Greer said in a statement. "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." Greer said the US will proceed with a USMCA bilateral negotiating round scheduled with Mexico during the week of July 20.
Focus on Rules of Origin and Economic Security
A senior administration official said that the talks in Mexico City would focus on strengthening North American rules of origin for autos and other industrial goods and economic security to keep other countries from benefiting from USMCA access. The official emphasized the need to prevent non-regional countries from exploiting the agreement.
Canada's Response
Dominic LeBlanc, the Canadian minister responsible for U.S.-Canada trade, said in a statement that USMCA remains "fully in force" until 2036 and can be renewed at any time for another 16-year period. LeBlanc, who participated in a virtual meeting with Greer and Mexican Economy Minister Marcelo Ebrard, added that Canada would continue to work to address President Donald Trump's tariffs on Canadian steel, aluminum, autos and lumber. "We agreed on the importance of continuing our discussions and identifying ways to ensure trade and investment frameworks between Canada, the United States and Mexico continue to support North American prosperity and competitiveness."
