The US has declined to renew the United States-Mexico-Canada Agreement (USMCA) in its current form, citing ongoing trade deficits with Mexico and Canada, while confirming that the trade pact will remain in force as negotiations continue.
US Trade Representative Jamieson Greer announced the decision following a virtual meeting involving officials from the three North American countries to review the agreement’s implementation.
In a statement, Greer said Washington did not agree to renew the USMCA under its existing terms and would continue discussions with Mexico and Canada to address what it considers shortcomings in the agreement.
“The United States did not agree to renew the USMCA in its current form,” Greer said, adding that the administration intends to pursue further negotiations aimed at reducing trade imbalances with its two largest regional trading partners.
Despite the decision, the agreement remains in effect while negotiations continue or until it reaches its scheduled expiry. US officials stressed that the move does not immediately alter existing trade rules governing commerce between the three countries.
Earlier in the day, a senior US administration official identified trade deficits with Canada and Mexico as Washington’s primary concern, saying efforts to rebalance trade remain a key priority for the administration.
The United States is expected to hold a third round of bilateral trade negotiations with Mexican officials during the week of July 20. No timetable has been announced for similar talks with Canada, although all three governments are expected to remain engaged in discussions over the future of the pact.
The USMCA replaced the North American Free Trade Agreement (NAFTA) and governs trade between the United States, Canada and Mexico. The latest decision signals a new phase of negotiations as the three countries seek to address outstanding economic concerns while maintaining one of the world’s largest regional trading relationships.