![\"NAFTA](\"https:\/\/www.newsbeep.com\/us-tx\/wp-content\/uploads\/2026\/06\/NAFTA-flags2-e1511824115877-1000x750.jpg\")
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Andrew Schneider\/Houston Public Media<\/p>\n
Flags of the U.S., Canada, Mexico and Texas hang at ARC Specialties in Houston on Nov. 16, 2017.<\/p>\n
The Trump administration is pushing up against a July 1 deadline to renew the United States-Mexico-Canada Agreement<\/a> (USMCA). President Donald Trump’s public remarks are leading to fears among some Texas businesses that he could pull the U.S. out of the agreement.<\/p>\n When Trump negotiated the USMCA during his first term as president, to serve as a replacement for the North American Free Trade Agreement (NAFTA), he called it the \u201cfairest, most balanced, and beneficial trade agreement we have ever signed into law.\u201d But last week, he said he’d rather see it terminated than renew it.<\/p>\n “I would rather not have the agreement,” Trump told reporters. “I may sign it, but we do better as a country if we don’t have an agreement.”<\/p>\n Sign up for the Hello, Houston!<\/a> daily newsletter to get local reports like this delivered directly to your inbox.<\/p>\n Michelle Schulz, a Dallas-based trade attorney, said she believes U.S. Trade Representative Jamieson Greer is less eager to withdraw from the USMCA than the president. But the decision is ultimately Trump’s.<\/p>\n “I wouldn\u2019t be surprised if the president did something dramatic and decided to terminate the agreement. I\u2019m ready for anything, but it would not be helpful for our U.S. importers,” Schulz said. “In fact, it would cause a great deal more disruption than the tariffs<\/a> have already caused, in my opinion as a trade lawyer.”<\/p>\n Schulz anticipates trade negotiations will continue past the July 1 deadline. If the deadline passes without a new agreement, the existing pact will expire in 10 years.<\/p>\n “Any of the three parties can withdraw at any time with notice,” Schulz said. “So, if the president decides that he does want to withdraw entirely, he can give prior notice, and we may see within the year that we give notice of withdrawal. Hopefully, that\u2019s not the case.”<\/p>\n Trade, particularly trade with Mexico, is a major driver of the Texas economy. Texas has been the United States\u2019 top exporting state for 22 consecutive years, and Mexico has been the state’s leading trade partner for at least the past 17 years.<\/p>\n