US has declined to renew its trade agreement with Mexico and Canada

Washington is seeking to amend the agreement to bring manufacturing jobs back to America and reduce the trade deficit with its neighbors, Reuters reports.

This decision was announced following a six-year review of the North American Free Trade Agreement. It means the agreement will remain in effect for another 10 years, but will be reviewed annually, after which it will expire unless the three countries agree to extend it with modifications.

"The United States did not agree to renew the USMCA in its current form. As a result, the USMCA was not renewed. The United States will continue to work with Mexico and Canada to address the agreement's shortcomings and reduce our trade deficit with them," said US Trade Representative Jamison Greer.

The United States will hold a bilateral round of USMCA negotiations with Mexico scheduled for the week beginning July 20.

The talks in Mexico City will focus on strengthening North American rules of origin for automobiles and other manufactured goods, as well as economic security issues to prevent other countries, particularly China, from benefiting from market access under the USMCA.

Mexican Economy Minister Marcelo Ebrard stated that Mexico is committed to helping address US concerns about job losses and a trade deficit. At the same time, he noted that differences remain between the US and Mexico over Washington's demands to tighten regional rules of origin for automobiles.

He held online talks with Greer and Canadian Minister Dominic LeBlanc, who is responsible for trade relations with the US.

LeBlanc stated that Canada will continue to work to resolve the issue of US tariffs on Canadian steel, aluminum, automobiles, and timber.

"We agreed on the importance of continuing our discussions and finding ways to ensure that trade and investment arrangements between Canada, the United States, and Mexico continue to support North America's prosperity and competitiveness," LeBlanc said.

Photo: Interfax-Ukraine.