The Donald Trump administration has decided not to extend the United States–Mexico–Canada Agreement (USMCA), which could mean the gradual phasing out of the North American Free Trade Agreement, which has been in effect for 32 years.
Reuters reported this information, citing Ukrinform. The idea is to amend the agreement to bring manufacturing jobs back to the U.S. and reduce the trade deficit with neighboring countries.
The announced decision is the result of a six-year review, which provides for the agreement to remain in effect for another 10 years with annual reviews unless new agreements are reached.
“The United States does not agree to extend the USMCA in its current form… We will work with Mexico and Canada to address the shortcomings of the agreement,” said U.S. Trade Representative Jamison Greer.
Bilateral talks with Mexico are scheduled for late July in Mexico City. They will focus on strengthening rules of origin for automobiles and other goods, as well as on economic security, to prevent other countries, such as China, from taking advantage of access under the USMCA.
Mexican Economy Minister Marcelo Ebrard confirmed that Mexico is ready to work on resolving the issues raised by Washington regarding jobs and the trade deficit.
