U.S. Declines to Extend USMCA, Initiating Negotiations With Canada and Mexico
The United States has formally declined to extend the United States-Mexico-Canada Agreement (USMCA), setting off a series of negotiations with Canada and Mexico to reach a revised agreement.
In a statement on July 1, U.S. Trade Representative Jamieson Greer announced that “the United States, Mexico, and Canada met virtually today to discuss the operation of the USMCA,” as required under Article 34.7, Section 2 of the agreement.
He continued:
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. However, the Agreement remains in force pending resolution of these issues or until the Agreement’s termination. As previously announced, the United States will meet with Mexico the week of July 20 for a third round of bilateral negotiations related to the USMCA joint review.
In a July 2 interview on Fox News, Greer noted that by not renewing the USMCA, “nothing changes today. It’s not like it’s a cliff. Trade continues. It just continues on better terms for America.”
Review, Not Withdrawal
Article 34.7, Section 4 of the USMCA stipulates that if a country declines to extend the agreement, “the [USMCA] Commission shall meet to conduct a joint review every year for the remainder of the term of this Agreement.” This period would last for 10 years — in this case, until 2036 — either until the USMCA expires or until all three countries agree to a revised agreement with a 16-year term.
As Greer noted in his statement, the United States and Mexico are scheduled to hold bilateral negotiations during the week of July 20 in Mexico City. Further meetings will likely be scheduled.
As we previously reported, U.S. President Donald Trump had indicated that he would not agree to a clean USMCA extension. Additionally, Greer had floated potentially withdrawing the United States from the agreement, while Secretary of Commerce Howard Lutnick said that “it needs to be reconsidered for the benefit of America.”
A Step Toward a North American Union
The New American has noted repeatedly that the USMCA, which replaced the North American Free Trade Agreement in 2020, is a major step toward a full-blown North American Union. Although the Trump administration’s decision not to accept a clean renewal is an opportunity to restore U.S. sovereignty by getting us out of the USMCA, there is no guarantee of this. Over the 10-year period of annual reviews, either the Trump administration or a future administration could agree to a revised agreement that further integrates the United States into a North American regional body. Statements by U.S. officials have indicated that the Trump administration is more inclined to seek a revised agreement rather than full withdrawal.
Instead of trying to renegotiate the USMCA, the Trump administration must withdraw the United States from it entirely — and Congress must act by introducing and enacting legislation to that effect. Urge your U.S. representative and senators to protect U.S. sovereignty by getting out of the USMCA and other international agreements.
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