The U.S. will not renew a North American trade pact with Canada and Mexico in its current state, according to a U.S. trade envoy.

Instead, the deal will be reviewed annually, likely creating uncertainty for businesses considering the extensive trilateral integration across the supply chains of the three countries.

The U.S. will continue to discuss “the agreement’s shortcomings” with Mexico and Canada “and our trade deficits with these countries,” the envoy said.

The decision not to extend the pact was widely expected. A Mexican official said that progress was being made on resolving U.S. concerns.

The action by the Trump Administration does not change day-to-day trade between the countries over the short term. The auto and energy industries will figure prominently in ongoing negotiations.