The next scheduled negotiating session over the future of the North American free trade pact will take place virtually at the start of next month, according to the Mexican minister leading the talks, who has sought to project optimism for a deal even as US President Donald Trump has adopted the opposite stance in recent days. 

The session will take place on July 1, the date the six-year-old USMCA originally stipulated for the deal’s potential extension.   

“We’re going to have a virtual meeting with our colleagues from Canada and the United States to discuss what’s next regarding the free trade agreement. It can be automatically extended for sixteen years or remain in effect for 10 years with periodic reviews,” Mexican Economy Minister Marcelo Ebrard said in a video posted on X from Washington following meetings with US officials. 

An extension of the agreement that provides tariff-free access to the US for a wide range of goods is especially important for the Mexican economy, with nearly 40% of the Latin American nation’s gross domestic product coming from exported goods and services, according to World Bank data. Underscoring the importance of access to the US market, around 80% of Mexican exports are sent to the US.

Trump has for years sent mixed messages about the future of the deal he negotiated during his first term. But he’s amped up his skepticism recently, saying on Wednesday that he views the USMCA as possibly expiring immediately and arguing that the US doesn’t need goods from either Mexico or Canada. He went on to say he’d prefer not to have an agreement but he’s open to one.

Ebrard insisted that the USMCA negotiations will continue beyond July 1, adding that the next round of talks will take place in Mexico City on July 20. “We’ll discuss more detailed texts and content,” he said, referring to the late-July session.

Even without a formal agreement to renew the North American trade accord, it will remain in place until at least 2036 unless any of the three nations quit it entirely. In the meantime, it’s slated to enter annual reviews, which is seen weighing on the predictability of regional trade going forward. 

During meetings held in Washington this week, Mexican and US officials discussed automotive and agriculture sector issues as well as rules of origin, Ebrard added.

Source: MSN

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