U.S. Trade Representative Jamieson Greer Rejects Renewing USMCA In Current Form, Starts Talks With Canada, Mexico

The United States, Canada and Mexico began a process to renew the U.S.-Mexico-Canada Agreement (USMCA) on Wednesday, with the pact set to be renewed for another 16 years if the partners agreed by the deadline.

“The US, Canada and Mexico begin bumpy negotiations to renew North American trade pact The US, Canada and Mexico begin bumpy negotiations to renew North American trade pact WASHINGTON (AP) — Tourists from Chattanooga check into beach resorts in Cancun”

Associated Press

The Associated Press said the USMCA “came up for renewal Wednesday,” and described the stakes as the United States trading $1.9 trillion a year—$5 billion a day—with Canada and Mexico.

Associated Press

U.S. Trade Representative Jamieson Greer said in a statement that “The United States did not agree to renew the USMCA in its current form,” setting up negotiations over amendments rather than a straightforward extension.

The USMCA remains in effect while the three countries continue to work on ways to resolve their differences, and the pact does not expire until 2036, according to the Associated Press.

The Associated Press reported that the U.S. wants changes to reduce its trade deficits with Canada and Mexico and to resolve disputes including Canada’s protection of its dairy industry.

In a statement, Greer said the United States “will continue to engage with Mexico and Canada to address the Agreement’s shortcomings and our trade deficits with these countries,” while the deal’s renewal process continues.

BFM

Mexican Economy Secretary Marcelo Ebrard said in a video posted on his social media accounts that he was confident the review could be concluded “within a reasonable time frame.”

The Associated Press also said any USMCA country can pull out of the pact with six months’ notice, a “red buzzer” that Canada and Mexico fear Trump could use to force outcomes.

The Associated Press said the path forward is “lined with landmines,” including U.S. demands that could effectively force Canada and Mexico to surrender some automaking production to the United States.

It added that such changes would upend established supply chains and could push up U.S. prices for new cars that “now average nearly $50,000,” while American consumers are already frustrated about the high cost of living.

Fox Business said the Trump administration’s official view is that the USMCA did not adequately control trade deficits and fell short of expanding “market access opportunities in Canada and Mexico,” citing Canada’s dairy restrictions and Mexico’s threats against U.S. corn and corn products.

Fox Business also said U.S. trade negotiators are expected to meet with their counterparts from Mexico on July 20 and to discuss issues including labor obligations, environment and water quality, and intellectual property.