A big-deal deadline for trade in North America just passed.The U.S.-Mexico-Canada Agreement was the trade deal that replaced NAFTA six years ago, and the three countries had until Wednesday, July 1 to decide whether to extend it another 16 years.Canada and Mexico were on board. The U.S. decided it didn’t want to do that.Now, the agreement didn’t expire yesterday. It just starts a countdown clock to fix whatever problems the countries want to fix before it does expire in 10 years. “We are entering into a period of what we would call ‘managed uncertainty,’” said Duncan Wood, a visiting fellow for North America at the nonpartisan think tank the Wilson Center.When the U.S. signed this deal, President Donald Trump promised more domestic manufacturing jobs, better wages in Mexico, and that the U.S. would shrink its trade deficit.“Not only have those things not happened, but in fact the opposite [has happened,]” said Lori Wallach, director of the Rethink Trade Program at the American Economic Liberties Project.Wallach said the trade deficit got worse, Mexican manufacturing wages are still lower than in China, and lots of jobs are still getting lost to other countries.“I think there would be bipartisan support for a good North American deal that actually does the things that President Trump promised,” she said.Still, the auto industry in particular has relied on the trade deal for easier cross-border manufacturing. The U.S. has the leverage to get more concessions from the other two countries, according to Simon Lester, a nonresident fellow at the Baker Institute at Rice University.“They've got specific demands for U.S. dairy products into Canada, or they'd like to change Mexican energy legislation to be more favorable to U.S. companies,” Lester said.He also said Canada and Mexico’s goals are more straightforward: Ease up on the tariffs.
What happens after a missed North American trade deal deadline
After a July 1 deadline passed to renew the U.S.-Mexico-Canada trade agreement, a new process begins to find a mutually acceptable deal.











