US to Review USMCA Annually Instead of Renewing

(CNA Washington, April 1) - U.S. Trade Representative Jamieson Greer said today that the United States will not renew the United States-Mexico-Canada Agreement (USMCA) in its current form, meaning the agreement will be subject to an annual review from now on.

According to Agence France-Presse and Reuters, this move is likely to increase uncertainty for businesses, given the deep integration of supply chains in North America, particularly in industries such as automobiles.

However, even without renewal by today's deadline, the USMCA will remain in effect for 10 years. The free trade agreement will subsequently be reviewed annually, unless a member country decides to withdraw from the agreement entirely.

"The United States does not agree to renew the USMCA in its current form. Therefore, the agreement has not been renewed," Greer said in a statement.

He added, "The United States will continue to communicate with Mexico and Canada to address the shortcomings of the agreement, as well as our concerns about the trade deficits with these countries."

A senior U.S. official told reporters that trade deficits are a core concern for the U.S., in addition to market access opportunities. The official also pointed out that there are tensions in areas such as dairy and corn.

Mexican Economy Minister Marcelo Ebrard confirmed the stalemate in negotiations but said the differences faced by all parties are not insurmountable.

Canadian Minister of Small Business Export Promotion and International Trade Dominic LeBlanc said Canada will continue to work on addressing the tariffs imposed by U.S. President Trump on Canadian steel, aluminum, automobiles, and lumber products.

LeBlanc said, "We all agree on the importance of continuing dialogue and finding ways to ensure that the trade and investment framework between Canada, the United States, and Mexico continues to support North America's prosperity and competitiveness." (Compiled by Chen Yu-ting) 1150702

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