U.S. President Donald Trump has once again raised the possibility of pulling out of the free trade agreement with Canada and Mexico, despite ongoing discussions by his trade officials to update it. Trump mentioned in the Oval Office that he does not intend to renew the Canada-U.S.-Mexico Agreement (CUSMA) during its upcoming review on July 1, six years after its implementation. Although the agreement is valid until 2036, any country can opt out with a six-month notice period.
Trump, who signed the agreement, also known as USMCA, during his first presidential term, expressed uncertainty about renewing it, citing that the U.S. does not necessarily require input from Canada or Mexico. He highlighted the agreement’s provision allowing termination after six years as significant and stated that discussions were ongoing to determine the next steps.
CUSMA plays a vital role in the Canadian economy, covering approximately $1.3 trillion in trade with the U.S. and safeguarding around 90% of Canada’s exports from Trump’s imposed tariffs. Both Canada and Mexico have officially declared their interest in extending the deal, with the possibility of negotiating enhancements. Meanwhile, the U.S. has initiated negotiations with Mexico regarding the agreement’s renewal, with additional talks scheduled for the near future.
The agreement offers the countries the choice to extend it for another 16 years or conduct yearly reviews. While Canada and Mexico have expressed their desire for extension, Trump’s chief trade official, Jamieson Greer, has not disclosed the U.S. stance. Trump’s recent remarks coincide with positive feedback from U.S. lawmakers and agriculture industry leaders regarding the trade deal’s benefits and the importance of its continuation.
