US says it won’t agree to renew USMCA

USMCA came into effect on July 1, 2020, and is slated to expire after 16 years.The United States will not agree to renew its trade pact with Canada and Mexico just yet, US Trade Representative Jamieson Greer has announced.“The United States did not agree to renew the USMCA in its current form,” Greer said in a statement. “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.”Recommended Stories list of 3 itemslist 1 of 3Canada seeks USMCA renewal for 16 years, sector tariff discussionslist 2 of 3Mexico and Canada push to extend USMCA trade pactlist 3 of 3If USMCA is not renewed, analysts expect uncertainty for businessesend of list⁠Mexico’s Economy Minister Marcelo Ebrard confirmed in a video on X that the US opted not to extend USMCA.The trade agreement between the three countries was up for its first joint mandatory review on Wednesday, under the framework set during US President Trump’s first term.USMCA came into effect on July 1, 2020, and is slated to expire in 2036.Mexico and Canada are two of the US’s largest trading partners. Until recently, Canada sent nearly 80 percent of its exports to the US.The US feels that the ⁠trade agreement did not adequately lower ⁠US trade deficits with its North American neighbours, the Reuters news agency reported on Wednesday, citing an unnamed senior ‌Trump administration official.The official ⁠said the administration was not interested ⁠in prolonging negotiations with ⁠Mexico and ⁠Canada, and that “we need to come to a ‌conclusion as quickly as possible.”Trump has repeatedly stated he wishes USMCA did not exist, saying in January that there was “no real advantage to it; it’s irrelevant.”“I don’t know that I’m going to renew it,” he said on June 10, before signalling he is open to negotiation with the deal’s other parties. “We’re talking to them. We’ll see if we do something.”