On July 1, the U.S. government declined to renew the U.S.-Mexico-Canada Agreement (USMCA)—but that&#x27;s not the end for the region&#x27;s free trade agreement. Kari Heerman spoke with Christopher Sands and Duncan Wood about what went wrong, what went right, and what comes next for North American economic relations.<br>Episode transcript and show notes.<br>Follow The Current and all Brookings podcasts on Apple, Spotify, or wherever you get your podcasts. Send feedback email to podcasts@brookings.edu.

USMCA fails to renew—but it's not over yet

The Brookings Current

On July 1st, the US government declined to renew the USMCA agreement. A lot of people heard that headline and thought, okay, the USMCA is no longer in effect, but that's not in fact the case. And I think people jump to the conclusion, well, does that mean USMCA is dead? Something must have happened for all of that pressure to build up. But actually, what happens was very subtle.

Hi, this is The Brookings Current from the Brookings Podcast Network. I'm Kari Heerman, a senior fellow in economic studies and director of trade and economic statecraft at Brookings. On July 1st, the office of the US Trade Representative announced that the US, quote, did not agree to renew the USMCA in its current form. The USMCA, or United States-Mexico-Canada agreement, is a free trade agreement among the three countries that went into effect six years ago,

negotiated during the first Trump administration to replace the North American Free Trade Agreement, or NAFTA. This renewal would have extended the pact as is for another 16 years with another joint review in 2032. Here to discuss with me what happened or failed to happen and what it means for economic relations in North America are two experts on the topic. Chris Sands is a visiting fellow in global economy and development here at Brookings, where he leads the USMCA initiative.

And also Duncan Wood, visiting fellow for North America at the Wilson Center. Welcome, Chris. Thank you, Kari. And welcome to you, Duncan. Thanks for having me. Chris, I'd like to start with the news itself. As I just said in the intro, on July 1st, the US government declined to renew the USMCA agreement.

USMCA fails to renew—but it's not over yet

Read the full transcript

The candid version is on a podcast,
not the earnings call.

USMCA fails to renew—but it's not over yet

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.