The US pressures to abandon the T-MEC while Mexico and Canada trust in its continuity
The US president, Donald Trump, has declared that he does not want to extend the T-MEC trade agreement, which has been in force for 32 years
This Wednesday, July 1, Mexico, the United States and Canada will begin the formal review process of the Free Trade Agreement, T-MEC, which faces complications to reach an agreement that could extend it for 16 more years.
Doubts about its renewal arise after various reports indicate that President Donald Trump's Administration is pressing not to extend the agreement, a situation that would imply starting a ten-year period for the dismantling of the North American trade zone.
The US president, Donald Trump, has declared that he does not want to extend the USMCA trade agreement, which has been in force for 32 years, and that it could enter an indefinite limbo with annual review sessions for the next 10 years, after which it would expire on July 1, 2036.
“We hope that July 1 will pass without the United States confirming its desire to extend the agreement,” said Greta Peisch, former USTR general counsel and trade partner at Wiley Rein in Washington.
Given the American refusal, optimism remains in Mexico about the continuity of the USMCA, which is reflected with President Claudia Sheinbaum who assures that there is optimism among the negotiating teams of Mexico, the United States and Canada.
“There is optimism in the sense that all the teams want the treaty to continue… The biggest defenders of the treaty are the businessmen themselves who have investments in Mexico, Canada and the United States and who produce articles or goods that are produced in production chains that are linked to the three countries,” he said in his morning conference on Tuesday, June 30.
The president also highlighted the strengthening of ties with Canada on the eve of the trilateral meeting and recalled the recent meeting with Canadian Prime Minister Mark Carney.
“There is a lot of progress, there are even improvements both in trade between Mexico and Canada and in investment,” he stated.
If the three countries agree to its continuity before July 1, the treaty will automatically be extended for another 16 years; Otherwise, it will begin a process of annual reviews that could drag on for a decade before eventually expiring.