Washington: USMCA review uncertainty has put the $1.6 trillion North American trade pact into a new round of talks as President Donald Trump declines to commit to its extension.
Mexico and Canada have already committed to renewing the United States-Mexico-Canada Agreement, while the Trump administration has held out.
Brookings said the pact requires the three countries to complete their first joint review by July 1, 2026. CSIS said a unanimous agreement would extend the pact to 2042, while failure to reach an agreement would trigger annual reviews and leave the pact set to expire in 2036.
Investopedia reported that Trump said he was “not looking to renew” USMCA, citing trade leverage over Canada and Mexico.
Trump also told reporters he was “not a big fan” of the pact and would rather have it “terminated.”
Read: USMCA Renewal Sought By Canada For 16 Years
Anne McKinney, vice president of the Americas programme at the U.S. Chamber of Commerce, said uncertainty makes it harder for companies to plan investments.
Automakers, dairy farmers and other U.S. industries rely on multibillion-dollar supply chains and export markets across the continent.
The pact replaced the North American Free Trade Agreement and entered into force in 2020 after congressional approval by wide margins.
