The top trade negotiator for U.S. President Donald Trump has revealed plans to potentially dismantle the current three-way free trade pact involving Canada and Mexico. Instead, the focus is shifting towards pursuing separate trade agreements with each country. Trade Representative Jamieson Greer emphasized the diverse economic dynamics between the U.S. and its northern and southern neighbors, indicating a departure from the unified North American trade agreement that has existed for three decades.
Greer stressed the distinct labor conditions, import-export patterns, and legal frameworks governing trade with Canada and Mexico, justifying the need for individualized negotiations. As the Canada-U.S.-Mexico Agreement (CUSMA) approaches its 2026 renewal, the Trump administration is exploring various options for its future. By July 1 next year, all three nations must declare their intentions to extend, renegotiate, or let the agreement expire.
During a recent address at the Atlantic Council, Greer refrained from disclosing the White House’s stance on CUSMA’s fate but hinted at the possibility of pursuing separate bilateral deals with Canada and Mexico. He highlighted ongoing separate dialogues with each country and indicated openness to revising or potentially exiting the current agreement. Despite the emphasis on bilateral negotiations, Greer also acknowledged the potential for a trilateral agreement involving critical minerals and trade policy alignment.
This development follows public consultations endorsing the benefits of CUSMA and industry appeals to preserve the agreement. Concerns raised by U.S. industries about the exploitation of trade rules by some Canadian firms have prompted a closer examination of CUSMA’s rules of origin to prevent circumvention practices. Greer’s recent engagements signal a strategic reevaluation of trade relationships within North America, with a focus on tailored agreements that reflect each country’s unique economic landscape.
