The U.S. Donald Trump administration announced on Wednesday (local time) that it will maintain the United States-Mexico-Canada Agreement (USMCA) for another 10 years while opting for an annual review process.

As the U.S. did not agree to extend the agreement in its current form, the USMCA will remain in effect for 10 years, with participating nations expected to engage in intense negotiations through annual reviews.

This decision is interpreted as a reflection of the Trump administration's America First trade policy, which prioritizes maintaining a state of renegotiation to maximize U.S. trade interests over a stable extension of the agreement.

In a statement released that day, the Office of the United States Trade Representative (USTR) stated, "The United States does not agree to a renewal of the USMCA in its current form," adding, "Accordingly, the USMCA will not be renewed."

The statement continued, "The United States will continue to consult with Mexico and Canada to address the shortcomings of the agreement and the trade deficit issues with these countries," and noted, "The agreement will remain in effect until these issues are resolved or the agreement is terminated."

The USMCA is an agreement signed in 2018 during President Trump's first term to replace the North American Free Trade Agreement (NAFTA).

The agreement is primarily based on duty-free trade, and the deadline to decide on its extension under the sunset clause was that day.

If an agreement to extend (renew) the USMCA had been reached, a new 16-year term would have been set. However, as no such agreement was reached, it will be maintained for another 10 years through an annual review process.

A senior official from the Trump administration explained during a press call that day, "President Trump has decided not to give formal consent to the renewal of the USMCA without addressing existing issues, in order to protect the interests of American workers, businesses, and farmers."

The official added, "The United States and President Trump are reshaping trade policy to pursue reciprocity and balance, and to open foreign markets," stating that the USMCA review process would be conducted within the context of broader trade policies.

(Photo: AP, Yonhap News)