US blocks long-term renewal of North American trade deal

The US has declined to renew the landmark US-Mexico-Canada Agreement (USMCA) in its current form, according to a senior US official. This decision means the trilateral trade pact will miss out on an automatic 16-year extension. The official said the administration "chose not to rubber stamp a USMCA-renewal" class="entity-link entity-topic" data-entity-id="156671" data-entity-type="topic">USMCA renewal without addressing existing issues," and "the United States did not agree to renew the USMCA in its current form". If the countries fail to unanimously agree to renew the agreement, "it essentially sets a ten year shot lock to termination," per the official.Under the pact guidelines, each country must decide whether to renew the agreement for another 16-year term. While the free trade deal remains in place for now, the lack of a long-term commitment creates fresh economic uncertainty across North America. The agreement, which underpins around $2tn (£1.5tn ) in trade each year, is facing pressure over unresolved disputes. US trade officials are pushing for major changes before committing to a long-term extension. Washington has consistently raised concerns over automotive rules of origin, dairy market access, and stopping third-party countries like China from exploiting the regional agreement.