Washington, July 3
President Donald Trump's decision not to renew the US-Mexico-Canada Agreement (USMCA) without first addressing what his administration calls shortcomings in the pact has drawn strong backing from American farmers, ranchers, manufacturers, businesses and lawmakers from both major political parties.
The White House said the President had chosen not to "rubber stamp" the agreement, arguing that the move was in the best interests of US manufacturers, farmers, ranchers, workers, service suppliers and businesses of all sizes. It stressed that the USMCA remains in force while Washington seeks to resolve existing issues with Canada and Mexico and reduce the US trade deficit with its North American neighbours.
The decision immediately became one of the top US trade stories, with major American media reporting that the administration had opened the door for fresh negotiations rather than extending the agreement in its current form.
Industry groups welcomed the decision, saying it offered an opportunity to strengthen enforcement and address long-standing disputes.
Shawna Morris, Executive Vice President of the National Milk Producers Federation and the U.S. Dairy Export Council, said, "As the United States, Mexico, and Canada launch the first Joint Review of the US-Mexico-Canada Agreement (USMCA), we commend the ongoing efforts to resolve outstanding issues and work toward a renewal of this vital agreement."
She added that dairy producers supported government efforts to address unresolved concerns. "A stronger, durable, renewed USMCA is key to the long-term prosperity of dairy producers and exporters across North America."
Bill Bullard, Chief Executive Officer of Ranchers Cattlemen Action Legal Fund, said negotiating separate trade agreements with Canada and Mexico offered "an opportunity to correct the serious deficiencies in the NAFTA and USMCA." He added, "We are encouraged that the administration is moving in that direction."
Melissa Hockstad, President and CEO of the Consumer Brands Association, said the review process gave the administration "a unique opportunity to elevate an ambitious approach with Mexico and Canada at the table." She said the organisation was confident the President and the US Trade Representative would pursue "an America First position that strengthens North American competitiveness and supports US manufacturing."
Several lawmakers from both Republican and Democratic parties also endorsed a review of the agreement.
Senator Pete Ricketts said trade ties with Canada and Mexico remained important for Nebraska but argued that "the current USMCA has issues that must be resolved." He said the administration was right to negotiate "the best deal possible for the American people."
House Ways and Means Committee Chairman Jason Smith said simply extending the existing agreement "is not in the best interest of the United States." He accused both Canada and Mexico of failing to meet several commitments under the agreement, including Canada's treatment of American dairy producers and Mexico's policies affecting US investors.
Representative Adrian Smith described the agreement as "the gold standard for modern trade agreements" but said enforcement had fallen short. He called the President's decision "not a termination—it is an opportunity to strengthen enforcement."
Representative Claudia Tenney also backed the move, saying the agreement should not be renewed without addressing issues affecting US wineries, dairy farmers and fruit and vegetable producers. Representative Dan Newhouse similarly argued that the decision created an opportunity to improve enforcement while keeping the agreement in place.
Democrats supporting a review included Representative Rosa DeLauro, who said she had led 105 Democratic members of Congress in urging renegotiation because the agreement "is failing American workers." She argued that multinational corporations had continued shifting leverage overseas while trade deficits with Canada and Mexico had grown.
Representative Chris Deluzio said both NAFTA and the USMCA had hurt manufacturing communities and called for "major pro-worker reforms" in any future arrangement. Representative Linda Sanchez said trade agreements should evolve alongside changes in supply chains and industries and described the current review as "a good sign that all three countries are ready to review and hopefully strengthen the agreement."
