USMCA is on hold due to US conditions

US Trade Representative Jamieson Greer explained that the Donald Trump administration is not willing to approve the automatic extension of the treaty because it believes there are still fundamental problems: “We believe there are significant problems,” he said, noting that the agreement requires several changes to correct imbalances before a long-term renewal can be considered.

The US position does not mean that the USMCA will disappear: the treaty will remain in effect for the next ten years, unless one of the three countries decides to withdraw. However, instead of being extended for another 16 years, it will be subject to periodic reviews while the partners attempt to reach a consensus on its future. If no agreement is reached by the end of that period, the treaty would expire in 2036.

In practice, the change means that North American companies will face an almost ongoing negotiation process.

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