- America isn’t renewing the US-Mexico-Canada Trade Agreement.
- Officials specified in its “current form,” hinting they want changes.
- Deal is now set to expire in ten years, unless something changes.
United States Trade Representative Jamieson Greer has announced the Trump Administration has decided not to renew the US-Mexico-Canada Agreement (USMCA). This comes despite his own office calling the deal a “mutually beneficial win for North American workers, farmers, ranchers, and businesses.”
In a short statement, the Office of the United States Trade Representative said they conducted a joint review of the agreement virtually with government representatives from Canada and Mexico. This meeting was called for under the terms of the agreement, which was spearheaded by the first Trump administration.
More: Trump Suggests He Won’t Renew US-Mexico-Canada Agreement
As part of the review, the United States “did not agree to renew the USMCA in its current form.” While this effectively dooms the trade deal, Greer said the “United States will continue to engage with Mexico and Canada to address the agreement’s shortcomings and our trade deficits with these countries.”
In the meantime, the agreement remains in force. CNBC reports it will continue for another decade as long as Canada or Mexico don’t decide to withdraw. The publication also says the latest move triggers a series of annual reviews, which “could result in the renegotiation of major parts of the treaty.”
The main sticking point appears to be trade deficits, which is something that Trump has fixated on. The Office of the United States Trade Representative lists the trade deficit with Canada at $46.4 billion and $196.9 billion with Mexico.
The administration likely wants to lower those numbers and make key changes to the USMCA. Previous reports have suggested officials wanted to increase required North American parts content from 75% to 82% as well as ensure at least 50% of that value would come from the United States.
It remains unclear how things will pan out, but Trump is a lame duck and will be out of office in early 2029. Canada and Mexico could theoretically wait out the clock and hope for better luck with the next administration. However, we’ll likely find out more in the days and weeks to come.
Lead image: White House photo
