Washington refused to renew the USMCA and started a ten-year countdown
The US administration declined to renew the USMCA trade pact with Mexico and Canada on schedule, triggering a ten-year sunset clock on the agreement. The decision creates fresh uncertainty for continental supply chains.
Under the pact's terms, if any party declines the six-year joint review, the agreement automatically enters a ten-year sunset process. Washington's move introduces long-term uncertainty into trade relations among the three countries.
The governments of Mexico and Canada warned the decision could affect ongoing investment plans. Companies in the automotive and agricultural sectors in particular are seeking clarity on the pact's future.
Experts say the ten-year process gives the parties time to renegotiate, but that the uncertainty could delay cross-border investment decisions in the near term.
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