Washington signals changes to USMCA after trilateral talks

The US administration has declined to extend the trilateral trade agreement with Canada and Mexico (USMCA), according to a release by the Office of the United States Trade Representative.

“The United States, Mexico, and Canada held a virtual meeting to discuss the functioning of the USMCA. The United States did not agree to extend the agreement in its current form,” the statement said.

The current agreement will remain in force for another ten years unless one of the parties withdraws from it. The agency emphasized that Washington will continue engaging with Canada and Mexico to address the agreement’s shortcomings and the trade deficit.

The statement also noted that President Donald Trump has already introduced adjustments to the agreement as part of a new tariff and trade policy. According to the US side, further negotiations with partners will help “improve the situation.”

The USMCA entered into force on July 1, 2020, replacing the previous NAFTA agreement, which had been in effect since 1994. At the time, the countries agreed to maintain a free trade regime for goods produced in North America, either fully or to a significant extent, while tightening rules of origin requirements for certain sectors, particularly the automotive industry.

By Tamilla Hasanova