Trump Cools on USMCA Trade Pact Renewal

The USMCA missed its long term renewal deadline this week, leaving the trade pact that governs roughly $1.8 trillion in annual North American commerce in a state of limbo rather than lapsing outright. The Trump administration says it wants more negotiation before committing to another 16 year term.

Key Takeaways

• The USMCA's scheduled renewal deadline passed without a long term agreement among the US, Mexico and Canada.
• US Trade Representative Jamieson Greer said the pact was not renewed in its current form because of concerns over trade deficits.
• The agreement automatically shifts into a period of annual reviews and would fully expire on July 1, 2036 absent a new deal.
• Autos, aerospace and food products are among the sectors likely to feature in continued talks.
• Another round of US Mexico negotiations is planned for this month in Mexico City, while no direct US Canada talks are currently scheduled.

Why the Deal Was Not Renewed on Schedule

Representatives from all three countries held a virtual meeting Wednesday, and the US used it to formally decline renewal. Greer said the administration would keep pressing Mexico and Canada on what it calls the agreement's shortcomings and on persistent US trade deficits with both countries. A senior administration official went further on a call with reporters, suggesting the USMCA has already been