US refuses to renew trade pact with Mexico, Canada for ‘trade deficit’

The US said Wednesday that it has agreed to renew the United States-Mexico-Canada Agreement (USMCA), citing “trade deficits with these countries.”

In a written statement, Trade Representative Jamieson Greer said that in accordance with the agreement, the US, Mexico, and Canada met virtually today to discuss the operation of the USMCA.

“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,” Greer said.

He emphasized that the USMCA will remain in force until the identified issues are resolved or the agreement expires, adding that, as part of the joint review process, the US will meet with Mexico during the week of July 20 for the third round of bilateral negotiations.

Earlier Wednesday, a senior administration official told reporters that the US’ primary issue with the world, in particular with Canada and Mexico, “is our trade deficit.”