WASHINGTON and ARLINGTON, VA. — Representatives from the United States, Mexico and Canada met virtually on July 1 for a joint review of the United States-Mexico-Canada Agreement (USMCA), during which the United States did not agree to renew the trade deal in its current form.
“As a result, the USMCA is not renewed,” stated US Trade Representative Jamieson Greer. “The United States will continue to engage with Mexico and Canada to address the agreement’s shortcomings and our trade deficits with these countries. However, the agreement remains in force pending resolution of these issues or until the agreement’s termination.”
Though the USMCA doesn’t expire until 2036, the decision not to renew for a 16-year term means the countries will have to undergo annual reviews, which could lead to separate bilateral agreements before the actual expiration.
During the week of July 20, the United States will meet with Mexico for a third round of bilateral negotiations related to the USMCA joint review.
The American Feed Industry Association (AFIA) expressed its concerns about the decision not to renew, citing that the USMCA has been a “cornerstone of growth and stability for the animal feed and pet food industry and should not be allowed to expire in the next ten years.”
“We have reservations about the administration’s decision not to renew the USMCA at this time,” said Constance Cullman, president and chief executive officer of the AFIA. “The USMCA has provided the confidence and predictability that the US animal feed and pet food industries need to invest, plan and compete. While bilateral agreements may address specific issues, they cannot fully replicate the efficiencies of a single, integrated North American market.
“Moving away from the USMCA risks creating unnecessary complexity and uncertainty for businesses that rely on seamless trade with Canada and Mexico,” she added. “We appreciate Ambassador Greer’s indication that discussions are continuing, and remain hopeful the administration can preserve the strong trilateral partnership that has made the USMCA such a success for US agriculture.”
The AFIA is one of nearly 160 agricultural groups, including the Pet Food Institute, that joined the Agricultural Coalition for USMCA earlier this year. In June, the coalition sent a joint letter to the USTR, urging for the renewal of the USMCA.
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