The Trump administration on Wednesday declined to renew the trilateral treaty agreement with Mexico and Canada in its current form during a scheduled six-year review, with the countries now expected to continue negotiations over proposed changes.
US Says Current USMCA Needs Changes
“The United States did not agree to renew the USMCA in its current form,” U.S. Trade Representative Jamieson Greer said in a statement following a virtual meeting with counterparts from Mexico and Canada.
The United States-Mexico-Canada Agreement (USMCA) is the North American trade agreement which governs trade among the three countries.
Greer said the agreement will remain in force while the three countries continue discussions to address what Washington described as shortcomings in the treaty and U.S. trade deficits with its North American trading partners.
The U.S. is scheduled to hold a third round of bilateral negotiations with Mexico during the week of July 20.
Canada, Mexico Back Continued Negotiations
Mexico’s Economy Minister Marcelo Ebrard said in an Instagram video that the treaty provided two possibilities. It could extend the agreement for another 16 years with unanimous approval, or keep it in force through 2036 with annual reviews.
Canadian Trade Minister Dominic LeBlanc reaffirmed Canada’s support for renewing the agreement, saying the three countries had agreed to continue discussions to ensure North America’s trade framework supports “prosperity and competitiveness.”
He added that Canada would continue discussions with the U.S. on sectoral tariffs covering steel, aluminum, autos and lumber.
Why It Matters
USMCA replaced the North American Free Trade Agreement in 2020 after being negotiated during President Donald Trump‘s first term and governs roughly $1.6 trillion in annual trade across North America.
Last month, Trump criticized the USMCA, saying the U.S. ran trade deficits with both Canada and Mexico rather than surpluses, adding that the agreement should deliver better terms for the U.S.
In December, Greer had hinted that the Trump administration was weighing a potential withdrawal from the USMCA in 2026, although no formal move has since been announced.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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