U.S. to Begin Decade of USMCA Amendment Talks Instead of Renewal

The U.S. will begin a decade of negotiations on amendments to the U.S.-Mexico-Canada Agreement instead of renewing the existing deal, a senior administration official said Wednesday. The announcement came six years to the day after the agreement took effect. Officials said the talks aim to address trade deficits with Mexico and Canada that rose after the pact was adopted.

Background on the Agreement The deal replaced the North American Free Trade Agreement and was intended to modernize trade rules among the three countries. Intraregional goods trade grew from $1.07 trillion in 2020 to more than $1.63 trillion in 2024, according to Brookings Institution data.

A senior administration official stated that modernization goals were met but rebalancing objectives were not. The same official noted that periodic joint reviews are built into the agreement.

Canada's minister responsible for U.S. trade relations said the country remains committed to the deal and met with the U.S. Trade Representative earlier in the day. The minister described Canada as a stable partner during global economic uncertainty.

The American Automotive Policy Council said North American integration provides competitive benefits but urged a swift resolution to maintain a level playing field for automakers. The Business Roundtable called for strengthening and extending the agreement to reduce regulatory friction.

Mexico is in talks with U.S. officials about the future of the deal, while Canada did not impose retaliatory tariffs last year.