US declines to extend North American trade deal, starting clock to end it while seeking changes

Reuters.com ^ | July 1, 202610:31 AM CDT | David Lawder

[E. Pluribus Unum]

Summary

• US denies extension of US-Mexico-Canada Agreement for 16 years without changes
• USMCA remains in place for 10 years with annual review before expiring
• More US-Mexico negotiations scheduled the week of July 20
• Mexico's Sheinbaum says work on USMCA will continue, 'today is not a deadline'

WASHINGTON, July 1 (Reuters) - The Trump administration on Wednesday declined to extend the U.S.-Mexico-Canada Agreement, starting a decade-long clock to wind down the trade deal as it seeks changes to try ‌to reshore manufacturing jobs and reduce U.S. trade deficits with its North American neighbors.

The decision, revealed after a six-year review of the North American free trade zone, 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.

"The United States did not agree to renew the USMCA in its current form," U.S. 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 U.S. will proceed with a USMCA bilateral negotiating round scheduled with Mexico during the week of ⁠July 20. A senior administration official said that those 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.

Mexican Economy Minister Marcelo Ebrard said in a video message on X that Mexico would go along with annual reviews, but work ​to resolve disputes in the trade deal that underpins a highly integrated North American economy with nearly $1.6 trillion in annual trilateral goods trade.

"We're in no rush, but we also...

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TOPICS: Business/Economy; Canada; Foreign Affairs; Mexico
KEYWORDS: canada; claudiasheinbaum; jamiesongreer; marceloebrard; mexico; usmca

[dfwgator]

Kill it!

[butlerweave]

It’s what Carney wants and now he’ll start his big push to DRAG Canada into the EU dictatorship

[ConservativeMind]

Why are we stuck for ten years with this Chinese goods agreement?

[MMusson]

This starts a ten year expiration clock

Look for Trump to WITHDRAW which is a 6 month process at some strategic moment.

[Sacajaweau]

It actually is effective for 10 years after July 1st or until they come up with a new agreement.