US declines to renew USMCA in its current form
On the sixth anniversary of the pact taking effect, US Trade Representative Jamieson Greer said the United States “did not agree to renew the USMCA in its current form” and would “continue to engage with Mexico and Canada to address the Agreement’s shortcomings.” The 2020 deal that replaced NAFTA contained a joint review at the six-year mark; without agreement to extend the full 16-year term, that review now converts into an annual process that keeps the agreement open to renegotiation each year through 2036.
The USMCA stays in force in the meantime, so there is no immediate cliff for cross-border trade. But shifting to yearly reviews removes the long-horizon certainty exporters and investors had relied on, and hands Washington recurring leverage. The administration’s stated grievance is that the deal has not narrowed US trade deficits with its two neighbors, the same rationale behind its broader tariff campaign. US officials said they want to reach a conclusion quickly and plan to meet Mexican counterparts the week of July 20.