President Donald Trump, Oval Office Washington DC ( Rapid Reports Photo )
U.S. Declines to Renew USMCA in Current Form, Trade Agreement Remains in Effect
The United States has declined to renew the United States-Mexico-Canada Agreement (USMCA) in its current form following the treaty’s required six-year joint review, signaling that the Trump administration intends to pursue changes before supporting a long-term extension.
Loading ...
The decision followed a virtual meeting of the USMCA Free Trade Commission, where representatives from the United States, Mexico, and Canada reviewed the North American trade agreement under provisions established when the pact took effect on July 1, 2020.
The USMCA replaced the North American Free Trade Agreement (NAFTA) and includes a review process outlined in Article 34.7. Under the agreement, all three countries must confirm in writing that they wish to extend the pact for another 16 years. If any country declines, the agreement remains in force while annual reviews begin until the parties either agree on an extension or the treaty reaches its scheduled expiration date of July 1, 2036.
Following the meeting, U.S. Trade Representative Jamieson Greer said the United States would not support renewing the agreement without first addressing key concerns.
“The United States did not agree to renew the USMCA in its current form,” Greer said. “The Agreement remains in force while the United States continues discussions with Mexico and Canada to address outstanding issues and improve the effectiveness of the trade framework.”
Greer also confirmed that U.S. and Mexican officials are scheduled to begin a third round of bilateral negotiations during the week of July 20 as part of the ongoing review process.
According to a senior administration official, President Donald Trump chose not to approve an automatic extension without seeking revisions aimed at strengthening the agreement and addressing long-standing trade concerns.
Administration officials cited U.S. trade deficits with both Mexico and Canada as one of the primary issues driving the decision. Government trade data for 2025 showed a U.S. goods trade deficit of approximately $196.9 billion with Mexico and $46.4 billion with Canada.
The administration is also seeking updates to rules governing North American manufacturing, particularly automotive rules of origin, as well as measures related to steel, aluminum, agricultural trade, and broader economic security.
Officials have also emphasized strengthening North American supply chains and reviewing provisions designed to limit trade benefits for goods produced outside the region.
For businesses, the decision does not immediately alter existing trade rules. The USMCA remains fully in effect, allowing companies to continue operating under current duty-free trade provisions while negotiations continue.
However, because the agreement was not renewed during the six-year review, the three countries will now conduct annual joint reviews until they either reach an agreement on a 16-year extension or the treaty expires in 2036.
The next phase of negotiations is expected to begin later this month, with U.S. and Mexican officials meeting in Mexico City to discuss outstanding trade issues. Separate discussions with Canada are also expected to continue as all three governments work toward potential updates to the agreement.
The outcome of those negotiations could shape the future of North American trade, manufacturing, and cross-border investment for years to come.
Benjamin Harris is a RapidReports front page contributor and editor,proud father of four.
Leave a Comment