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“Trump Administration Mulls Splitting NAFTA Pact”

U.S. President Donald Trump’s top trade negotiator has indicated that the administration is contemplating the possibility of dismantling the trilateral free trade agreement involving Canada and Mexico, in favor of pursuing separate agreements. U.S. Trade Representative Jamieson Greer stated during a recent discussion that the Trump administration is exploring various options for the future of the Canada-U.S.-Mexico Agreement (CUSMA) as it nears its renewal in 2026.

Greer, a key figure in trade negotiations, is advocating for individual trade deals with the United States’ neighboring countries due to the distinct economic dynamics with Canada and Mexico. He emphasized the differences in labor conditions, import-export activities, and legal frameworks between the two nations, suggesting that separate discussions would be more appropriate.

All three countries are required to declare by July 1 of the following year whether they intend to extend, renegotiate, or let the agreement lapse. Greer is expected to present a report to the U.S. Congress 180 days before this deadline to outline the administration’s intentions.

While Greer did not disclose the administration’s stance on CUSMA during the recent conversation, he mentioned the possibility of various outcomes, including termination, revision, or renegotiation of the agreement. He hinted at the potential division of the agreement into distinct bilateral agreements with Canada and Mexico, noting that discussions with the two countries have been conducted separately.

Recent discussions with the U.S. president highlighted the focus on securing beneficial deals, indicating a willingness to review, revise, or exit agreements if necessary. Despite considerations for separate negotiations, Greer acknowledged the value of maintaining a trilateral agreement on certain issues such as rules of origin, critical minerals, and trade policy alignment among the three countries.

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