The US administration is considering the possibility of withdrawing from the trade agreement (USMCA) signed between Mexico, the US, and Canada.
Elchi.az reports that this was reported by Bloomberg, citing sources.
According to reports, US President Donald Trump raised the idea of Washington withdrawing from the agreement he signed during his first presidential term in closed discussions. An office of US trade negotiator Jameson Greer stated that the terms of the agreement approved in 2019 did not meet national interests. It was also emphasized that the administration intends to create broad opportunities for the head of state to make a decision.
Bloomberg notes that the US withdrawal from USMCA will immediately lead to economic costs. Thus, more categories of goods exported from Canada and Mexico, which are currently exempt from tariffs applied by Washington under the agreement, will be subject to duties.
The possible extension of USMCA depends on the mandatory review scheduled for July 1. If the agreement is extended, it will remain in effect for another 16 years. If no agreement is reached, the agreement will be reviewed annually until it expires in 2036. The agreement covers approximately $2 trillion worth of goods and services.
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