Trade deal with US and Canada remains in effect, says Mexican president

MEXICO CITY: The United States-Mexico-Canada Agreement (USMCA) remains valid and in effect, Mexican President Claudia Sheinbaum said on Monday, emphasising that reviewing the trade pact does not mean ending or dismantling it.

In response to US President Donald Trump's repeated suggestions that the deal could be scrapped or replaced, Sheinbaum explained that the agreement is undergoing a periodic review as required by the USMCA.

Under the USMCA, a review six years after the agreement took effect assesses its operation, considers any changes that may be needed, and determines whether all three parties agree to extend it for another 16 years.

Sheinbaum said that Mexico and Canada had requested a 16-year extension, while the United States had proposed maintaining a 10-year framework with annual reviews.

Discussions are continuing on matters of mutual interest covered by the trade agreement, but no agreement has yet been reached, she said.

The priority is to lower US tariffs on Mexican exports of automobiles, steel and aluminium to the United States and avoid new tariffs while the review is under way, she said.

The USMCA review process began on July 1 after the United States opted not to automatically extend the agreement and instead proposed annual reviews over the coming decade.

By RSS/Xinhua