Key facts
- U.S. Trade Representative Jamieson Greer aims for interim trade deals with Mexico and Canada by the end of the year.
- More complex USMCA changes, including automotive rules of origin, are likely to be deferred to 2027.
- The trade pact's full renegotiation is expected to extend into next year, prolonging business uncertainty.
- The USMCA underpins nearly $1.6 trillion in regional trade.
U.S. Trade Representative Jamieson Greer expressed hope on Wednesday for reaching interim trade agreements with Mexico and Canada by the end of the year, while indicating that more complex revisions to the U.S.-Mexico-Canada Agreement (USMCA) would likely be postponed until 2027. This approach suggests that a complete renegotiation of the trade pact will not occur this year, potentially extending business and investment uncertainty.
Greer informed the Senate Finance Committee that key U.S. objectives, such as modifying automotive rules of origin to encourage more production within North America, alongside enhanced labor and environmental standards, will require additional time for negotiation. He stated that he aims to present options for interim arrangements to President Donald Trump, Mexican President Claudia Sheinbaum, and Canadian Prime Minister Mark Carney by year's end.
These comments signal that the USMCA, which has governed North American trade for 32 years and underpins nearly $1.6 trillion in regional commerce, will face annual reviews for the next decade until its potential expiration in 2036, following President Trump's decision not to renew the agreement on July 1. Mexico's new ambassador to the U.S. had previously indicated an expectation to finalize a new USMCA deal by the end of the year.