Washington (United States) (AFP) – The United States has declined to renew a North American trade pact with Canada and Mexico in its current state, the US trade envoy said Wednesday, meaning the deal will now be reviewed annually.

The move is likely to fuel uncertainty for businesses, given the deep integration across North American supply chains in sectors like automobiles.

But the US-Mexico-Canada Agreement (USMCA) remains in force for another 10 years even if not extended by Wednesday’s deadline.

The free trade pact will instead be subject to annual reviews, unless a country decides to withdraw entirely.

“The United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed,” US Trade Representative Jamieson Greer said in a statement.

“The United States will continue to engage with Mexico and Canada to address the agreement’s shortcomings and our trade deficits with these countries,” he added.

A senior US official told reporters that US trade gaps were a key concern, alongside market access opportunities. The official flagged tensions in areas like dairy and corn.

Mexico’s economy secretary, Marcelo Ebrard, confirmed the impasse but said there were no insurmountable differences to resolve.

He noted that Washington’s pending complaints over the agreement have dropped from 54 in 2025 to 14.

On Wednesday, the USTR held a virtual meeting with Ebrard and Ottawa’s minister in charge of Canada-US trade, Dominic LeBlanc.

The Trump administration’s decision not to extend the pact was widely expected.

President Donald Trump said in June that he was not “looking to renew” the agreement despite signing and praising it in his first term.

Canada and Mexico had both called for a 16-year renewal of the USMCA.

With the deal subject to rolling negotiations instead of a longer term extension, talks could last for months or years over everything from tariffs to trade rules governing specific sectors.

…