US refuses to renew USMCA under current terms and asks for more time to renegotiate

The Trump administration decided on Wednesday not to extend the free trade agreement with Canada and Mexico (USMCA) under its current terms, arguing that it needs more time to resolve trade disagreements with its two partners.

Had it been renewed on Wednesday, the agreement would have been automatically extended for an additional 16 years. According to AFP, the treaty will continue to be renewed annually for the duration of the negotiations, unless one of the three countries formally terminates it.

“The United States did not agree to renew the USMCA in its current form,” said U.S. Trade Representative Jamieson Greer in a statement issued following a virtual meeting with his counterparts from Mexico and Canada.

Greer assured that Washington will continue to work with both countries “to address the agreement’s shortcomings and reduce our trade deficits.”

The USMCA will remain in effect “until those issues are resolved or until the agreement itself is terminated,” the White House noted.

President Trump’s position

Earlier this month, President Trump had already indicated that he was not willing to renew the pact as it stands, even though he himself pushed for its signing in 2020 during his first term.

The president wants specific concessions to boost U.S. production and exports, particularly in the automotive and agricultural sectors, and to reduce Chinese influence in the North American supply chain.

Trump has been emphatic in stating that the United States “needs nothing” from Canada or Mexico, while both countries, according to him, “need many things” from the U.S. economy.

A new round of negotiations between the United States and Mexico is scheduled for July 20. So far, no new date has been announced for talks with Canada.