Trump Administration to Seek Separate Trade Deals with Canada and Mexico, Dropping USMCA Renewal
The United States will not renew the USMCA and plans to negotiate bilateral agreements with Canada and Mexico to address trade deficits and market access issues.
The White House announced that the United States will not seek to renew the United States-Mexico-Canada Agreement (USMCA) when it expires, opting instead to negotiate separate trade accords with Canada and Mexico. The existing pact will remain in effect for its full ten-year term while the new talks proceed.
Administration officials said the trilateral deal does not sufficiently curb trade deficits and lacks adequate market-access provisions, citing Canadian dairy restrictions and Mexican barriers to U.S. corn products. A senior official added that President Trump is "skeptical" of amending the USMCA and prefers bilateral protocols aimed at reducing deficits.
U.S. trade negotiators are scheduled to meet Mexican counterparts on July 20 to discuss labor standards, environmental and water-quality measures, and intellectual-property protections. The official noted that both sides have already discussed strengthening rules of origin and addressing bilateral issues, and that Mexico has offered proposals to lower the deficit.
Regarding Canada, the official said the country imposed retaliatory tariffs after recent U.S. actions and has not resolved several non-tariff barriers. While the USMCA will stay in place during a ten-year review period, the president retains the legal right to withdraw from the agreement at any time if both partners fully cooperate on the administration’s demands.
