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Trump's Indifference Towards USMCA Poses Uncertainty for $2 Trillion Trade

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On July 1, as officials begin reviewing the United States-Mexico-Canada Agreement (USMCA) signed by President Trump during his first term, the countdown to the expiration of this comprehensive trade agreement is about to begin. The USMCA, which came into effect six years ago, is the cornerstone of nearly $2 trillion in annual trade among the three countries. The agreement covers a wide range of goods, from Mexican steel to Canadian milk, and establishes detailed rules across multiple sectors, including automobile manufacturing, investor protection, intellectual property, and digital services. However, the agreement also has a clear expiration date. Unlike its predecessor, the North American Free Trade Agreement (NAFTA), the USMCA includes a provision requiring the three countries to negotiate the agreement's renewal starting this year. Regardless of whether amendments are made, the agreement will expire in 2036 unless reauthorized.
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