The United States, Canada, and Mexico have begun negotiations to renew the US-Mexico-Canada Agreement (USMCA), a trade pact that governs $1.9 trillion in annual trade between the three countries.
Background
The USMCA, which replaced the North American Free Trade Agreement (NAFTA) in 2020, is up for renewal every six years. The current agreement is set to expire in 2036, but the US is seeking changes to reduce its trade deficits with Canada and Mexico.
The US wants to increase the percentage of automotive products made in North America, specifically the US, to qualify for duty-free treatment. This could lead to higher prices for cars and disrupt established supply chains.
Impact on Businesses
Many businesses, including those in the automotive and spirits industries, are seeking stability and consistency in trade policies. The US’s ever-changing tariffs have caused uncertainty and increased costs for companies like PKGD Group, which imports agave spirits from Mexico.
Businesses are calling for a renewed agreement that provides clarity and predictability, allowing them to plan and invest for the future.
Original reporting: Texarkana Gazette — read the source article.
