Tricky negotiations begin Monday to renew a trade pact between the United States, Mexico and Canada

"Every day more than $4 billion worth of goods cross the United States' borders with Canada and Mexico - U.S. auto parts headed for car factories in northern Mexico, cartons of Mexican avocados bound for California supermarkets, Canadian aluminum destined to become cans of Campbell Soup. Much of this bustling cross-border commerce is duty-free, thanks to the US-Mexico-Canada Agreement, or USMCA."

"The top U.S. trade negotiator told Politico in December that Trump would be willing to pull the United States out of the pact if he can't get the deal he wants. Trump also suggested last fall that the United States could negotiate separate deals with Canada and Mexico, ending the three-country North American bloc that previous administrations saw as crucial to competing economically with China and the European Union."

"At stake is $1.6 trillion worth of annual trade in goods between the United States and its two USMCA partners. Mexico and Canada are far ahead of China in both exports to and imports from the United States. Any USMCA country can pull out of the pact provided it gives its two partners six months' notice."

Over $4 billion in goods cross daily between the United States, Canada, and Mexico under the USMCA trade agreement, which eliminated tariffs on most cross-border commerce. The pact, negotiated during Trump's first term and effective since July 2020, now faces renewal uncertainty. The Trump administration is demanding treaty modifications and has indicated willingness to withdraw from the agreement or pursue separate bilateral deals with each country. Renewal talks began between U.S. and Mexican officials, with countries having until 2036 to reach agreement before expiration. Any nation can exit with six months' notice, creating anxiety for Canada and Mexico, which depend heavily on U.S. trade. The agreement governs $1.6 trillion in annual trade, with Mexico and Canada exceeding China as U.S. trading partners.

Read at ABC7 Los Angeles