U.S. President Donald Trump’s chief trade negotiator has indicated that the administration is contemplating the possibility of breaking up the trilateral free trade agreement involving Canada and Mexico, with a shift towards pursuing separate trade deals. Speaking on Wednesday, U.S. Trade Representative Jamieson Greer highlighted that all options are being considered for the future of the Canada-U.S.-Mexico Agreement (CUSMA) as it approaches its renewal deadline in 2026.
Greer emphasized the distinct nature of the economic relationships with Canada and Mexico, citing differences in labor conditions, import-export dynamics, and legal frameworks. This has led to discussions revolving around the potential for individual bilateral agreements with the two neighboring countries, marking a departure from the unified North American trade pact that has been in place for three decades.
The upcoming decision on the fate of the agreement requires all three nations to declare their intentions by July 1 of the following year, which could involve an extension, renegotiation, or expiration of the current terms. Greer is tasked with presenting a report to the U.S. Congress 180 days prior to this deadline, signaling the administration’s stance.
While Greer did not disclose any definitive direction during the recent discussion, he acknowledged the various possibilities, including the termination, revision, or renegotiation of CUSMA. However, he strongly hinted at the likelihood of pursuing separate bilateral negotiations with Canada and Mexico, pointing out that conversations with the two countries have already been conducted individually.
Recent remarks made by Greer to Politico underscored the ongoing deliberations with President Trump regarding the potential for distinct negotiations. The considerations come amidst industry support for the Canada-U.S.-Mexico Agreement, with stakeholders urging the administration to uphold the pact. In a Senate subcommittee appearance, Greer emphasized the importance of refining the agreement’s rules of origin, particularly in light of concerns surrounding the sourcing practices of some Canadian firms.
While the focus remains on potential separate deals, Greer also acknowledged the scope for collaborative efforts, such as addressing rules of origin and aligning trade policies, under a trilateral agreement involving all three countries.