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US will refuse to renew USMCA as China becomes fault line in North America trade review
Officials from the US, Mexico and Canada will meet on Wednesday to review the agreement after Trump said he does not want to extend it
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Igor Patrickin Washington
The United States is expected to formally decline to extend its free-trade agreement with Mexico and Canada on Wednesday, starting a years-long process that could wind down the trade zone unless the three governments agree on sweeping changes.
Trade chiefs from the three countries are due to meet virtually on the sixth anniversary of the United States-Mexico-Canada Agreement, with Washington widely expected not to confirm that it wants to keep the pact in its current form.
The move stops short of withdrawal, but will open a review that analysts say has become a contest over how far the Trump administration can curb Chinese access to the North American market.
Mexican President Claudia Sheinbaum on Tuesday said she had signed a letter calling for the deal to be extended for 16 years, while Canadian Prime Minister Mark Carney said he expected a “constructive exchange” but no agreements to sign.
“The priority is to get a new deal. We’re ready to negotiate an improvement of this agreement,” the Canadian leader said.
US Trade Representative Jamieson Greer, who has scheduled a third round of talks with Mexico for the week of July 20, has made clear he intends to keep pressing for changes.
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