The US government will not support the automatic extension in its current form of the Agreement between the United States, Mexico and Canada (USMCA), which begins the ten-year period until its expiration in 2036. This was stated by US Trade Representative Jamieson Greer, quoted by Reuters, reports BTA.
According to him, the administration in Washington is pushing for changes to the agreement that would return more manufacturing jobs to the United States and reduce the country's trade deficit. According to the American position, the current agreement should be updated to provide greater benefits to the American economy.
Despite the decision, USMCA remains in force until 2036 and will be subject to annual review. If the three countries agree on the proposed changes, the agreement could be extended for another 16 years.
The next round of negotiations between the United States and Mexico is scheduled for the week of July 20, when Washington's specific proposals are expected to be discussed.
Mexican President Claudia Sheinbaum said the U.S. decision does not constitute an end to the agreement and stressed that cooperation between the three countries will continue. For his part, Canadian International Trade Minister Dominique LeBlanc noted that the agreement remains in force until 2036 and that Ottawa will continue to seek solutions to trade disputes with the United States, including on issues of tariffs on steel, aluminum, cars and lumber.
In recent months, the administration of President Donald Trump has imposed 25 percent tariffs on cars made in Canada and Mexico, as well as 50 percent tariffs on metals. In the ongoing negotiations, Washington is insisting that cars made in North America must contain at least 50% components made in the United States.
USMCA came into effect in 2020 during Donald Trump’s first term as president, replacing the North American Free Trade Agreement (NAFTA). When he signed it, Trump called it “the best deal we’ve ever made.”
Just a month ago, Canada and Mexico proposed extending the agreement for another 16 years. However, President Trump continues to question its benefits to the American economy and has repeatedly said that the United States could withdraw from the agreement. He has repeatedly argued that the American economy does not need much of Canadian manufacturing, and during the World Economic Forum in Davos he stated that “Canada lives thanks to the United States“.
Although Bulgaria is not a party to the USMCA, the development of trade relations between the United States, Canada and Mexico is important for the global economy and international supply chains.