OTTAWA — The United States has decided not to renew the Canada-United States-Mexico Agreement (CUSMA), triggering a yearly review process instead of extending the trade deal for another 16 years.
U.S. Trade Representative Jamieson Greer said the agreement will remain in effect while Canada, the United States and Mexico continue talks to address what Washington calls the deal’s “shortcomings” and trade imbalances.
Trade officials from the three countries met virtually on Wednesday, the deadline to decide whether to renew CUSMA. Because the U.S. did not agree to extend the pact, the agreement will now undergo annual reviews for up to 10 years.
Canada was represented by Canada-U.S. Trade Minister Dominic LeBlanc and chief negotiator Janice Charette. LeBlanc said Canada continues to support renewing CUSMA and wants to keep working with both countries to strengthen trade and resolve ongoing disputes, including U.S. tariffs on Canadian steel, aluminum, automobiles and lumber.
Mexico also backed renewing the agreement. Economy Secretary Marcelo Ebrard said CUSMA remains in force and confirmed more talks with U.S. officials are planned later this month.
Prime Minister Mark Carney had said before the meeting that he did not expect a major breakthrough. U.S. President Donald Trump has repeatedly criticized CUSMA but has not taken steps to withdraw from the agreement, which would require six months’ notice.
Despite the review process, CUSMA remains in place. Most Canadian goods continue to enter the United States tariff-free under the agreement, although U.S. tariffs on several key industries remain in effect as trade negotiations continue.
