USMCA Future Hinges on july 1st Trump Decision, Mexican Officials Say
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Mexico braces for a critical decision from former President Donald Trump regarding the future of the United States-Mexico-Canada Agreement (USMCA), with a deadline of July 1st looming.
mexico is preparing for a pivotal moment in it’s trade relationship with the United States and Canada. According to statements made by a senior economic official on Thursday, Trump must signal his intent to renew the USMCA by July 1st, as stipulated by the agreement’s legal framework. The announcement comes as Mexican officials continue negotiations aimed at solidifying the trade pact and addressing U.S. concerns.
Progress in Negotiations Reaches 90%
Negotiations surrounding the USMCA are reportedly at an advanced stage, with approximately 90% of objectives already achieved. A former chancellor explained that a meaningful phase focusing on key U.S. trade issues – a total of 54 points – has been completed. The current focus has shifted to defining each nation’s desired outcomes and establishing a clear path forward, building upon the existing treaty framework.
Trump’s Stance and Potential Adjustments
Despite recent rhetoric questioning the necessity of the USMCA, a senior official believes that maintaining a strong economic relationship with Mexico is strategically advantageous for Trump, given the country’s position as a primary trading partner. “My point of view is that if they do not want the Treaty, then a consultation is not held,” the official stated, predicting that the U.S. will likely seek modifications rather than outright abandonment of the agreement. Mexico, in turn, aims to strengthen the system to reduce economic uncertainty and secure ratification as swiftly as possible.
Mexico is prioritizing the reduction or elimination of tariffs as a key objective in the ongoing negotiations. The official asserted that Mexico possesses “reasonable arguments” to support the renewal of the treaty,anticipating a series of adjustments that will be subject to discussion.
Sheinbaum Confident in USMCA’s Endurance
President Claudia Sheinbaum expressed confidence in the continuation of the USMCA,citing the robust commercial ties between Mexico,the united States,and Canada. Speaking during a public appearance on January 22nd, Sheinbaum affirmed her governance’s commitment to preserving the trade agreement, emphasizing its mutual benefits for all three nations.
Sheinbaum also indicated plans to engage in direct dialog with both Canadian Prime Minister mark Carney and Donald trump to facilitate negotiations related to the trade agreement. These discussions follow reported tensions between Trump and Carney following their respective addresses at the World Economic Forum in Davos, and Trump’s prior statements suggesting the U.S. could thrive without the USMCA.
The coming months will be crucial in determining the fate of the USMCA,with the July 1st deadline serving as a critical inflection point in the ongoing trade discussions.
Why is this happening? The USMCA is facing potential renegotiation or even abandonment due to former President Trump’s questioning of its necessity and his desire for more favorable trade terms for the U.S.
Who is involved? Key players include Donald Trump, Mexican President Claudia Sheinbaum, Canadian Prime minister mark Carney, and senior economic officials from all three countries.
What is at stake? The future of a $1.3 trillion trade agreement that governs commerce between the U.S., Mexico, and Canada. Potential consequences include economic disruption, tariff increases, and uncertainty for businesses.
How did it end? As of this report, the situation remains unresolved. Mexico is actively negotiating with the U.S. to address concerns and secure renewal of the USMCA before the July 1st deadline. The outcome hinges on Trump’s decision,
