The United States has confirmed it will not renew the Canada-United States-Mexico Agreement (CUSMA) in its current form, although the trade pact will remain in force while negotiations continue between the three North American partners.
In a statement released on Wednesday, U.S. Trade Representative Jamieson Greer said Washington intends to continue discussions with Canada and Mexico to address what it sees as weaknesses in the agreement, as well as ongoing trade imbalances.
“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. “However, the Agreement remains in force pending resolution of these issues or until the Agreement’s termination.”
Rather than extending the agreement for another 16 years, the U.S. decision activates a rolling annual review process that could continue for up to a decade. If the three countries fail to agree on an extension during that period, the agreement would eventually expire.
The announcement followed a virtual meeting between Greer, Canada’s Minister responsible for Canada-U.S. Trade Dominic LeBlanc, and Mexico’s Secretary of Economy Marcelo Ebrard, held on the deadline for each country to indicate whether it wished to extend the agreement.
Both Canada and Mexico had previously expressed their support for a full 16-year renewal.
Following the meeting, LeBlanc said all three countries had agreed to continue working together.
“We agreed on the importance of continuing our discussions and identifying ways to ensure trade and investment frameworks between Canada, the United States and Mexico continue to support North American prosperity and competitiveness,” he said.
He added that, from Canada’s perspective, negotiations must also address the U.S. tariffs currently affecting Canadian steel, aluminum, automobiles and lumber.
Speaking in a video shared on social media, Ebrard said Mexico wanted to avoid the uncertainty created by repeated annual reviews, although he stressed that the country was not rushing negotiations.
While CUSMA has protected Canada and Mexico from many of President Donald Trump’s broad tariff measures, both countries continue to face separate U.S. duties targeting sectors such as steel, aluminum, automotive products and cabinetry.
Originally negotiated during Trump’s first administration as the replacement for NAFTA, CUSMA was widely viewed as a successful outcome despite difficult negotiations. Since returning to office, however, Trump has repeatedly questioned the agreement’s future, at one point describing it as “irrelevant” and suggesting it may have already fulfilled its purpose.
Under the agreement, CUSMA will remain in effect unless one of the three countries formally provides six months’ notice of withdrawal. It remains unclear whether the U.S. administration could take that step without congressional approval.
Trade discussions between the United States and Mexico are already underway, while formal negotiations between Ottawa and Washington have yet to begin.
The delay has drawn criticism from Canada’s Conservative Party. Trade critic Shuv Majumdar argued that prolonged uncertainty is making it harder for Canadian businesses to plan investments and growth.
LeBlanc defended Canada’s position, saying the country is entering discussions from a position of strength.
“At a time of global economic uncertainty, Canada is a stable, reliable and trusted partner,” he said, highlighting Canada’s energy resources, skilled workforce and attractive investment environment.
Trade experts say the missed renewal deadline is less significant than the tone of ongoing negotiations.
Carlo Dade, director of international policy and the New North America Initiative at the University of Calgary’s School of Public Policy, said continued dialogue is more important than the formal review process itself.
He noted that businesses are gradually adapting to a new reality in which uncertainty has become a constant feature of U.S. trade policy, although that uncertainty still carries economic costs.
Dade also pointed out that while some members of the Trump administration continue to support key elements of CUSMA, others have taken a much more critical stance.
Meanwhile, Andrew Hale, a fellow at Advancing American Freedom, warned that prolonged uncertainty could discourage long-term investment across North America because of the deeply integrated supply chains shared by Canada, the United States and Mexico.
He added that if negotiations drag on for years, the region risks becoming less competitive globally, particularly as annual reviews could repeatedly reopen trade disputes.
According to Hale, each new review has the potential to increase tensions.
“They push people right to the edge of the cliff every time they have these negotiations,” he said.
