US Declines to Renew USMCA in Current Form Over Trade Deficits

By Staff, Agencies

US Trade Representative Jamieson Greer announced on Wednesday that Washington has declined to renew the United States-Mexico-Canada Agreement [USMCA] in its current form, citing significant trade deficits with Canada and Mexico while pledging to continue negotiations on a revised deal.

In a written statement, Greer said officials from the United States, Mexico and Canada held a virtual meeting earlier in the day to review the agreement.

“The United States did not agree to renew the USMCA in its current form. 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,” Greer said.

Earlier on Wednesday, a senior US administration official told reporters that Washington's chief concern in its trade relationships, particularly with Canada and Mexico, is the country's trade deficit.

Greer said the USMCA will remain in force until the identified issues are resolved or the agreement reaches its expiration date. He also confirmed that US and Mexican officials are scheduled to hold a third round of bilateral trade negotiations during the week of July 20.

The decision marks a significant development in North American trade relations as the US administration continues to prioritize reducing trade imbalances with its two largest trading partners.