The United States announced it will not renew the Canada‑United States‑Mexico trade agreement in its current form.
The decision was communicated after a virtual joint review meeting, a process required under the pact.
Despite the refusal to renew, the agreement remains in force for another ten years and will continue to undergo annual reviews. It could be terminated if any party chooses to withdraw entirely.
If the parties reach a new accord, the pact could be extended for up to sixteen years.
The U.S. trade representative said Washington will keep engaging with Canada and Mexico to address the agreement’s shortcomings and existing trade deficits, while the agreement stays active pending resolution.
Canada’s trade minister reaffirmed unwavering support for the deal, citing its role in sustaining millions of jobs and guaranteeing secure market access for Canadian businesses.
The three ministers agreed to continue discussions on trade issues that have delayed renewal, including U.S. tariffs on Canadian steel, aluminum, automobiles and lumber.
Canadian officials highlighted the nation’s stability, abundant energy resources, skilled workforce and predictable business environment as foundations of a trusted partnership.
The United States raised longstanding concerns such as Canada’s supply‑managed dairy, poultry and egg sectors, the Buy‑Canadian procurement policy, provincial restrictions on U.S. bidders, and alcohol import bans linked to earlier tariff measures.
The original agreement, effective July 1, 2020, governs nearly $2 trillion in annual goods and services trade, and the United States cited growing trade deficits as a key factor in its stance.
U.S. policymakers indicated a shift toward negotiating separate, decade‑long agreements with each neighbor, reshaping the dynamics of North American trade.
