U.S. Trade Representative Jamieson Greer confirmed that the Trump administration will not renew the U.S.-Mexico-Canada Agreement (USMCA) trade agreement in its current form after a joint review.
The USMCA replaced NAFTA during President Donald Trump’s first term.
“The United States will continue to engage with Mexico and Canada to address the Agreement’s shortcomings and our trade deficits with these countries,” announced Greer. “However, the Agreement remains in force pending resolution of these issues or until the Agreement’s termination.”
Greer said the administration “will meet with Mexico the week of July 20 for a third round of bilateral negotiations related to the USMCA joint review.”
An official told Fox Business that Trump wants “separate deals with Canada and Mexico that last up to 10 years.”
The relationship between Trump and the two countries has soured over tariffs:
Trump’s “primary” issue with USMCA centers on America’s trade deficits with the two trading partners, according to the official.The official added that Trump “has already changed the nature of the US-Canada-Mexico trading relationship” prior to Wednesday’s deadline through his tariffs. “So we have already seen USMCA, to some degree, to some degree subordinated by the president’s robust trade policy and adjustments of policies.”
The latest trade data shows that “Canada and Mexico were the two largest export markets for U.S.-made goods, while Mexico was the largest source of U.S. imports and Canada ranked third in that category.”
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