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International Business Times
International Business Times
Business
Matias Civita

The Trump Administration Has Decided Not to Extend USMCA Trade Deal. Now A Countdown Begins to Change It

The move does not immediately terminate the agreement, but activates a clause requiring annual reviews until 2036 unless the United States, Mexico, and Canada agree on extending the pact for another 16 years. (Credit: Saul Loeb/AFP via Getty Images)

The United States has declined to extend the U.S.-Mexico-Canada Agreement (USMCA) during its mandatory six-year review, launching a 10-year countdown that could ultimately bring an end to the agreement unless the three countries agree to significant revisions.

The move, announced Wednesday by the Trump administration, does not immediately terminate the agreement. Instead, it activates the treaty's "sunset clause," requiring annual reviews until 2036 unless the United States, Mexico, and Canada reach a consensus on extending the pact for another 16 years.

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