The Trump administration is preparing to signal that it does not currently support extending the U.S.-Mexico-Canada Agreement, or USMCA, for another 16 years, according to a Reuters report.
Mexico’s economy minister, Marcelo Ebrard, had promoted the proposal as a way to provide longer-term certainty for the regional trade framework. Without an agreement among the three countries, however, the pact would move into a period of mandatory annual reviews over the next decade.
That process is tied to the agreement’s “sunset clause,” which requires the United States, Mexico and Canada to periodically assess whether the trade deal should continue. If no formal extension is approved, the USMCA would remain set to expire on July 1, 2036.
Trade officials from the three countries are expected to review the issue, while Washington is also preparing for additional negotiations with Mexico over possible changes to the agreement.
The USMCA replaced NAFTA in 2020 and remains a key framework for North American trade. Still, the three governments continue to face disagreements over issues such as trade balances, rules of origin and tariffs in strategic industries.
Source: XEU Noticias
