Donald Trump Latest News: The USMCA trade deal is arguably the most important trade deal in North America. However, US President Donald Trump recently made some dismissive comments about the deal, which is slated for a renewal this year.
Donald Trump Latest News: Donald Trump’s Recent Comments
US President Donald Trump recently attended a state dinner hosted by French Prime Minister Emmanuel Macron at Versailles Palace, France. There, he signed a copy of the Islamabad Memorandum of Understanding, with Iran, signaling an end to the Middle East conflict.
However, Trump also made some dismissive comments about the USMCA deal. “I would rather not have the agreement, but I may sign it. We do better as a country if we don’t have an agreement”, he stated while speaking to reporters.
Donald Trump Latest News: What is the USMCA Deal?
The United States-Mexico-Canada agreement is a trilateral trade deal between the US, Mexico and Canada. It was initially signed in 2018 and formally came into effect from 2020. This year, on 1st July, all three countries will have the option to either renew the deal or walk away from it.
Donald Trump Latest News: Significance of the USMCA Deal
The USMCA deal is extremely important for all three countries involved. It has successfully led to tariff free trade between the borders of the US, Mexico and Canada. According to estimates, the deal accounts for nearly $1.8 trillion in trilateral trade.
Will the USMCA Deal Get Terminated?
When speaking to reporters today, President Trump did threaten termination of the deal, saying “I’d rather have it terminated”. Its fate depends on the joint review that the US, Canada and Mexico will soon conduct.
Donald Trump Latest News: How Do Canada & Mexico Feel About the Deal?
Both Canada and Mexico have expressed positive statements about the deal. Dominic LeBlanc, the Canadian Trade Minister recently stated that “it is highly beneficial to each of our countries” and urged Mexico and the US to renew it.
Mexican president Claudia Sheinbaum also expressed her wish to renew the deal in a press conference from this week. “The treaty benefits all three countries. The first treaty had its problems for the United States. This second treaty was signed by President Trump himself”.
At the time Sheinbaum reassured that Economy Secretary Marcelo Ebrard would ensure the renewal of the deal. However, neither Canada nor Mexico has responded to Trump’s termination threat so far.
