The United States has announced that it will not renew the USMCA, a historic trade agreement with Mexico and Canada.

The United States has declared that it will not renew the USMCA Agreement in its current form, according to a statement from the Office of the U.S. Trade Representative (USTR). The agreement will remain in effect until the issues are resolved or it is terminated. Washington prefers annual reviews, a strategy that could introduce uncertainty for companies on both sides of the border.

The White House suggests that firms invest in the U.S. to eliminate uncertainty. Mexico, represented by Economy Minister Marcelo Ebrard, emphasized that annual reviews can help address trade disputes. The agreement, in effect since 2020, has a duration of 16 years and regulates a trade volume of nearly 2 trillion dollars annually between the three countries.