(Judy Bottoni/Associated Press, File)
key takeaways:
- Trump said in Paris that he would not want the USMCA but would be willing to sign a renewal.
- The deadline for renewal of the agreement is July 1, although without renewal it enters rolling review before potential expiration.
- US talks with Mexico continued this week, while formal talks with Canada have not started.
President Donald Trump said he would prefer the US not be part of the US-Mexico-Canada trilateral trade agreement, but sent mixed signals about the upcoming renewal deadline and stopped short of directly threatening to quit.
Trump told reporters in Paris, “I’m thinking maybe we won’t get a deal. I wouldn’t keep the USMCA. The primary reason I wanted to was there was no way to get out of NAFTA, which was the worst trade deal ever.”
Trump said, “I would prefer to leave it unsigned; I would prefer it to be finished.” “I wouldn’t want to compromise, but I can sign it.”
The USMCA agreement is up for renewal by July 1, although the US has declined to do so. Barring renewal, it enters rolling review for 10 years before expiring if not renewed.
The comments strongly indicate that Trump is open to a possible renewal of the trade agreement for a new 16-year term, but there is skepticism.
The President has repeatedly suggested that both Canada and Mexico need a trade deal with the United States more than the United States and has sought to use that disparity to push for more favorable trade terms.
Trump’s responses linked the July 1 milestone — the agreement remaining in effect with rolling review — to expiration, which would require one party to opt out. Trump has privately thought about stepping down but has not publicly threatened to do so, nor given the required six months’ notice.
He said, “I would prefer not to make any compromise, but I am prepared to do so, we will see what happens.” “I consider it probably going to end immediately.”
America is negotiating on a bilateral basis. Talks are ongoing with Mexico, including sessions this week, while formal talks have not begun with Canada.
