The Trump administration 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.
Reuters said the decision, announced after a six-year review of the North American free trade zone, keeps the agreement in place for another ten 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.”
The U.S. decision was widely expected, as Greer said that more time was needed to address problems with USMCA, including persistent and growing U.S. goods trade deficits with both countries.
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