{"id":3346,"date":"2026-06-30T13:09:41","date_gmt":"2026-06-30T13:09:41","guid":{"rendered":"https:\/\/reliablemovingcrews.com\/?p=3346"},"modified":"2026-06-30T13:09:41","modified_gmt":"2026-06-30T13:09:41","slug":"us-declaration-to-exit-usmca-to-start-a-decade-long-countdown-for-the-pact","status":"publish","type":"post","link":"https:\/\/reliablemovingcrews.com\/?p=3346","title":{"rendered":"US declaration to exit USMCA to start a decade-long countdown for the pact"},"content":{"rendered":"<div>\n<div>\n<div>\n<ul>\n<li>Summary<\/li>\n<\/ul>\n<\/div>\n<div><\/div>\n<\/div>\n<div>WASHINGTON, June 30 (Reuters) &#8211; U.S. President Donald Trump&#8217;s administration is expected to \u200bformally declare on Wednesday that it will not extend the U.S.-Mexico-Canada Agreement on trade, starting a decade-long clock to wind down the 32-year-old \u200cNorth American free trade zone as the three countries haggle over proposed changes.<\/div>\n<div>That declaration will kick off a six-year review session, part of a &#8220;sunset clause&#8221; negotiated by President Donald Trump&#8217;s first administration. However, it will do little to alter contentious negotiations over the pact&#8217;s future, including sweeping demands to boost U.S. and regional content in North American automotive production and trade protections to block \u200bChinese goods from benefiting from USMCA.<\/div>\n<div>Trade chiefs from the U.S., Mexico and Canada are expected to meet virtually on Wednesday and declare whether they \u200bwant to extend the pact for another 16 years. U.S. Trade Representative Jamieson Greer has already scheduled a third round of \u2060negotiations with Mexico for the week of July 20, signaling his intent to keep pushing for changes.<\/div>\n<div>&#8220;We expect July 1st to come and go, and for the \u200bUnited States to not confirm its wish to extend,&#8221; said Greta Peisch, a former USTR general counsel who is now a trade partner at Wiley Rein in Washington.<\/div>\n<div>Peisch \u200badded that it&#8217;s unclear &#8220;whether the U.S. says exactly what it&#8217;s looking for in a public way&#8221; in a statement expected after the meeting.<\/div>\n<div>Failure to reach agreement on revisions to USMCA would keep the trade pact in an indefinite limbo, with similar review sessions annually for the next 10 years, after which the North American trade pact would expire on July 1, 2036.<\/div>\n<div>The review \u200band sunset process, which was considered controversial when it was enacted, is separate from a termination clause that U.S. President Donald Trump or his Mexican and Canadian \u200bcounterparts could exercise, triggering a U.S. withdrawal from the pact within six months.<\/div>\n<div>Trump, whose first administration negotiated USMCA to replace the 1994 North American Free Trade Agreement, hailed its 2020 launch \u200cas &#8220;the fairest, \u2060most balanced, and beneficial trade agreement we have ever signed into law.&#8221;<\/div>\n<div>But he quickly soured on USMCA as the U.S. goods trade deficit with Mexico expanded, partly because companies shifted supply chains away from China after he imposed steep tariffs on Chinese goods. Trump frequently says that he doesn&#8217;t want to renew USMCA, favoring instead the steep tariffs that he has imposed on Mexican and Canadian autos, steel and aluminum.<\/div>\n<h2>U.S., MEXICO TALK WITHOUT CANADA<\/h2>\n<div>For now, the U.S. is holding formal negotiating rounds with Mexico only, \u200bleaving Canada to the side amid a \u200blong list of bilateral trade irritants ranging \u2060from Canada&#8217;s restricted dairy market to Canadian provinces pulling American liquor from store shelves. Greer has planned no schedule to launch formal negotiations with Canada, though he holds discussions with his Canadian counterpart, trade minister Dominic LeBlanc.<\/div>\n<div>For Mexico, Greer&#8217;s team has demanded \u200bthat all North American-built vehicles contain 50% U.S.-specific content, a figure that would drive regional required content up to \u200b82% to qualify for \u2060U.S. benefits, sources familiar with the talks have said. Vehicles assembled in Mexico and Canada would still likely be charged some level of tariffs, Greer has said.<\/div>\n<div>A Mexican official said that the U.S. and Mexico have discussed the idea of a universal global tariff of 15% on autos, but a lower rate for vehicles from Mexico and Canada if \u2060they agree \u200bon stricter rules of origin<\/div>\n<div>The official said Mexico and the United States broadly agree on USMCA\u2019s problems: \u200bA steady decline in U.S. manufacturing jobs; falling U.S. content in autos as Asian parts increase; and concerns over increasing transshipment.<\/div>\n<div>&#8220;Mexico and the U.S. are in agreement about the goals. What we are discussing \u200bis how to reach them,&#8221; the official added.<\/div>\n<\/div>\n<p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=3344\">US Supreme Court to decide Republican challenge to campaign spending curbs<\/a><\/p>\n<p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=3342\">US Supreme Court to decide legality of state transgender sports bans<\/a><\/p>\n<p>Read more <a href=\"https:\/\/reliablemovingcrews.com\/?p=3340\">With independent agencies imperiled, Fed may face further pressure despite Cook win<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>U.S. President Donald Trump&#8217;s administration is expected to \u200bformally declare on Wednesday that it will not extend the U.S.-Mexico-Canada Agreement on trade, starting a decade-long clock to wind down the 32-year-old \u200cNorth American free trade zone as the three countries haggle over proposed changes.<\/p>\n","protected":false},"author":1,"featured_media":3345,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[84],"class_list":["post-3346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - 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