US refuses to renew USMCA pact with Mexico, Canada over deficits

US Trade Representative Jamieson Greer on Wednesday announced that Washington has refused to renew the United States-Mexico-Canada Agreement — the trilateral trade pact known as USMCA — in its current form, citing substantial trade deficits with Ottawa and Mexico City while vowing to press ahead with renegotiation efforts.

Virtual summit fails to secure renewal

In a written statement, Greer confirmed that officials from the US, Mexico, and Canada had convened earlier in the day for a virtual meeting to review the agreement's operation. "The United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed. The United States will continue to engage with Mexico and Canada to address the Agreement's shortcomings and our trade deficits with these countries," Greer said.

Trade deficits dominate agenda

Earlier on Wednesday, a senior administration official told reporters that Washington's primary concern regarding global commerce — particularly with Canada and Mexico — "is our trade deficit."

Greer noted that the USMCA will remain in effect until the identified issues are resolved or the agreement expires, adding that Washington will meet with Mexican officials during the week of July 20 for a third round of bilateral negotiations. The refusal to renew marks a significant shift in North American trade relations as the administration maintains its focus on reducing commercial imbalances with its closest neighbors.