The United States has officially decided against renewing its trade deal with Canada and Mexico, opting instead to conduct annual rolling reviews of the pact. US Trade Representative Jamieson Greer stated that the United States-Mexico-Canada Agreement, in its current form, requires these reviews before it can be renewed. This decision comes despite calls from both Canada and Mexico for a 16-year renewal.
The USMCA, signed by President Donald Trump during his first term, came into effect on July 1, 2020. While the agreement will remain in effect until it expires in 2036, Washington's refusal to renew the deal by a Wednesday deadline has triggered a countdown to its expiry. The move is expected to lead to tough negotiations regarding amendments to the deal.
A senior administration official indicated that President Trump's primary issue with the agreement centers on America's trade deficits with Canada and Mexico. The shift toward annual reviews risks introducing uncertainty for companies producing goods across North America. In response to the situation, LeBlanc is scheduled to meet virtually with the U.S. Trade Representative and the Mexican Economy Secretary on Wednesday.