Last week the United States decided not to renew the United States-Mexico-Canada Agreement (USMCA).
United States trade representative Jamieson Greer announced the decision in a statement, but did not explicitly state the reason. He referenced “shortcomings” and “trade deficits” that the U.S. will continue to address with Mexico and Canada.
The USMCA Agriculture Coalition, representing farm and agricultural groups, and 20 House Agricultural Committee Democrats sent letters to the Trump-Vance administration encouraging the renewal and expressing concern about the future of North American trade. Set to expire in 2036, USMCA will now be reviewed annually and subject to negotiations.
House Democrats wrote in their letter, that “by not renewing USMCA, the president and his administration are threatening one of his legacy achievements, and the last source of trade certainty our farmers have.”
USMCA, which replaced the North American Free Trade Agreement (NAFTA) in 2020 under the first Trump administration, serves as an agreement between the United States, Mexico, and Canada and is intended to strengthen North American trade and support economic stability. In 2024, “agricultural and seafood exports to Canada and Mexico generated US$149 billion in total economic contribution to the U.S. economy and supported nearly half a million jobs,” according to a study by the Agricultural Coalition for USMCA.
The current Agreement maintains NAFTA’s elimination of tariffs on almost all U.S. agricultural exports to Mexico and Canada. According to the International Trade Administration, major differences between the two Agreements include the modernization of sanitary and phytosanitary (SPS) measures, which ensure food safety for agricultural products, and the creation of standards for handling evolving biotechnologies, such as gene editing. It also expands market access for U.S. products, including dairy.
A study by Purdue University finds that trade agreements, including USMCA, have significantly lowered food prices for Americans and created access to seasonal produce year-round.
Prior to the renewal period, the Agriculture Coalition for USMCA sent a letter to the U.S., Canada, and Mexico trade representatives urging them to renew the Agreement. In light of the U.S.’ failure to renew, Bryan Goodman, a spokesperson for the Coalition, tells Food Tank that “U.S. farmers continue to seek the renewal and strengthening of USMCA… President Trump is a strong negotiator, and we look forward to working with the administration to renew the agreement.”
While the U.S. declined renewal, Canada and Mexico expressed their support of the Agreement in the meeting. “We agreed on the importance of continuing our discussions and identifying ways to ensure trade and investment frameworks… to support North American prosperity and competitiveness,” says the Honorable Dominic LeBlanc, Minister of Canada-U.S. Trade, Intergovernmental Affairs, Internal Trade and One Canadian Economy.
The U.S. will meet with Mexico in two weeks to continue negotiations.
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Photo courtesy of Howard Walsh, Unsplash
