Trump Doesn't Extend Mexico, Canada Trade Deal

A trade pact that President Trump once hailed as his crowning economic deal is now on probation. The Trump administration on Wednesday declined to sign off on a long-term renewal of the US-Mexico-Canada Agreement, the Guardian reports, instead pushing it into yearly checkups and negotiations rather than locking in another 16 years. The move keeps the 2020 pact—Trump's replacement for NAFTA—in effect, but off automatic pilot. The deadline was Wednesday for a decision on the deal's future. The decision starts an expiration countdown for 10 years from now, per the New York Times, unless all three participants agree on renewal.

The US trade representative's office cited continued trade deficits with Canada and Mexico, and a senior administration official said Trump "chose not to rubber stamp" the existing terms. Trade chief Jamieson Greer pledged to keep working with both neighbors to fix what Washington calls "shortcomings." Trump has recently turned on the deal he once called the "fairest" ever signed, telling reporters the US doesn't "need anything" from Canada or Mexico. Having annual reviews injects new uncertainty and difficulty for companies that depend on roughly $2 trillion in cross-border trade and could chill long-term investment across North America.