The Star exclusively
reported Wednesday on the list of contentious trade irritants that are at the heart of U.S. concerns as the July 1 deadline looms for Canada, the U.S. and Mexico to declare their intentions about renewing the continental trade deal, known as CUSMA in Canada and USMCA in the United States.
If the three signatories don't declare an intention to renew the deal for another 16 years, a period of annual reviews would kick in, during which the pact would remain in force for another decade — unless any party gives the required six months’ notice to withdraw.
Trump said that's clearly his preferred option at this time. "To me, I think it's better without it," he said. "
I mean, to be honest with you, I'm not a big fan of it."
The United States-Mexico-Canada Agreement (USMCA) was primarily negotiated for the United States by then-U.S. Trade Representative
Robert Lighthizer and senior White House advisor
Jared Kushner, operating under the administration of President Donald Trump, so why would he like it?
Trump's latest comments on the prospects of signing a new trade agreement go beyond his remarks last week, when he said he was "not looking to renew" the continental trade deal. On Wednesday, he also disputed the notion that the deal would nonetheless remain in force for another decade, saying, "I view it as possibly expiring immediately?” (???)
U.S. President Donald Trump said Wednesday that he would prefer it if the Canada-United States-Mexico Agreement on trade "expired immediately," although he left open the possibility that he could sign a new deal but would still rather leave it "unsigned."
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Asked by reporters to clarify what he meant by terminating the agreement, and if he meant allowing it to roll over into an annual process, Trump said, "I would rather not have the agreement, but I may sign it. But we do better as a country if we don't have an agreement.
Abandoning CUSMA (USMCA) would make America worse off economically, as a full termination of the continental trade agreement would disrupt $2.7 trillion in annual trade, destroy highly integrated cross-border supply chains, and invite retaliatory tariffs.
Without CUSMA’s protections, trading partners would be free to impose retaliatory tariffs on American exports. This would hurt U.S. farmers and manufacturers who rely on these major international markets.
CUSMA establishes predictable rules for intellectual property, digital trade, and labor. Eliminating these frameworks removes investment certainty for U.S. businesses, which can slow job growth, but that’s neither here nor there I guess.
U.S. President Donald Trump on Wednesday said that the United States would do better without the U.S.-Mexico-Canada Agreement on trade and that he would prefer not to have a new one, but added that he was open to doing it.
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While Trump did not specify on what measure the U.S. would "do better" without a North American free trade deal, there's plenty of evidence that CUSMA has helped fire up the U.S. economy.
Business Roundtable, an association of more than 200 chief executives of major U.S. companies,
published a report that shows a 50 per cent increase in two-way trade in the region since the deal took effect, with 13 million U.S. jobs supported by trade with Canada and Mexico.
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Canada and Mexico purchase more U.S. manufactured goods than the next dozen U.S. trading partners combined and represent the top export markets for U.S. agricultural products," said Business Roundtable president Kristen Silverberg in an article for the Brookings Institution, a think-tank in Washington, D.C.
U.S. President Donald Trump has sounded off once again about his country's three-way trade deal with Canada and Mexico, this time musing about the agreement "expiring immediately."
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The USMCA is the largest, fairest, most balanced, and modern trade agreement ever achieved. There’s never been anything like it," Trump told a
signing ceremony in January 2020.
"
This is a colossal victory for our farmers, ranchers, energy workers, factory workers and American workers in all 50 states," he said.
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The United States cannot withdraw from a congressionally approved trade agreement without the consent of Congress," concluded the Republican-led Senate Finance Committee in a
2020 report, and will Trump hold sway over Congress after November (?) or even leading up to November?
While the annual average sits comfortably around two to four, the frequency fluctuates based on personal chemistry, shifting global events, or intense trade negotiations. During times of crisis or massive legislative overhauls (such as the NAFTA to USMCA renegotiations), in-person summits and direct diplomatic contact increase significantly.