Mexico City, Mexico - Talks between US and Mexican trade officials kicked off on Monday as North America gears up for the renegotiation of the US-Mexico-Canada Agreement later this year.

The USMCA has allowed a huge amount of duty-free cross-border commerce in North America since it came into effect on July 1, 2020, accounting for more than $4 billion worth of trade every single day.

Despite working with Canada and Mexico to establish the free trade agreement during his first term in the White House, President Donald Trump continues to cast doubt over whether the USMCA will be successfully renegotiated.

If talks are successful, the USMCA could be renewed for up to 16 years – or it could be ditched entirely if Washington refuses to play ball.

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The USMCA managed to stave off some of the worst impacts of Washington's unpredictable tariff policy on Canada and Mexico, a reality that has angered Trump as he continues to criticize and threaten the US' neighbors.

Trump is particularly unhappy about the fact that the USMCA failed to resolve the trade deficit with Mexico, which last year rose by a whopping $197 million. It is also running a deficit with Canada.

It is unclear whether any success has been seen during talks between Mexico and the US on Monday, which were announced by US Trade Representative Jamieson Greer earlier in March.

According to the USTR, the US and Mexico are looking at "reducing dependence on imports from outside the region, strengthening rules of origin, and enhancing the security of North American supply chains."

Mexico's President Claudia Sheinbaum has championed the USMCA, saying in January that she is "convinced" negotiations on the trade agreement will be successful.

Trump, however, has been dismissive of the agreement and suggested in January that while the USMCA offers advantages to Canada and Mexico, it is "irrelevant" to the US.