President Donald Trump has decided not to renew the United States-Mexico–Canada Agreement, the trade pact he negotiated during his first term in office, according to US Trade Representative Jamieson Greer.
Trump previously praised the agreement as “truly fair and reciprocal” when it took effect in 2020, but administration officials now argue that it failed to achieve some of its primary economic objectives.
“We think there are substantial issues,” Greer told reporters while discussing the administration’s decision.
Although the move sounds dramatic, the agreement will not immediately expire. Instead, the decision not to renew it triggers a lengthy review process that could lead to annual renegotiations over the next decade, beginning with a summit scheduled for July 20.
Administration officials said the primary concern is America’s ongoing trade deficits with both Canada and Mexico.
“The USMCA did not operate to control the deficit like the president intended, so that’s really the heart of it,” one administration official said.
The White House is also seeking greater access to Canadian markets, particularly in the dairy industry, while objecting to Mexican proposals involving tariffs on American corn exports.
Another major issue involves rules governing automobile manufacturing in North America. The administration wants stricter requirements mandating that a larger percentage of vehicles assembled in Canada and Mexico contain American-made parts in order to qualify for tariff exemptions.
Officials argued that without stronger rules, companies could shift manufacturing operations to Mexico and continue exporting products to the United States without facing tariffs imposed on goods from other countries.
Administration officials also suggested that many of Trump’s broader tariff policies have already overshadowed portions of the agreement.
“He’s already subsumed USMCA under new trade and tariff policies,” one official said.
The decision sets the stage for potentially significant trade negotiations between the three countries over the coming years as the administration seeks to reshape North American trade policy.
The post Trump Won’t Renew USMCA Deal With Canada and Mexico, Trade Representative Says appeared first on Real News Now.
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