The US announced that it will not extend the United States–Mexico–Canada Agreement (USMCA), and will begin a 10-year transition period to gradually phase out the trade pact.

The decision follows a six-year review of the North American free trade framework. According to reports, the U.S. is seeking changes aimed at bringing more manufacturing jobs back to the country and reducing trade deficits with its neighbors.

Mexico’s Economy Minister Marcelo Ebrard said Mexico hopes to help address the US concerns over employment and trade imbalances. However, the two countries still have differences regarding stricter rules of origin for automobiles. Canada’s Minister responsible for Canada-U.S. trade, Dominic LeBlanc, said Canada will continue discussions with the U.S. on tariffs affecting steel, aluminum, automobiles, and lumber. All parties agreed that continued dialogue remains important to maintain a trade and investment framework that supports North American prosperity and competitiveness.