On July 1, 2026, the U.S. Trade Representative (USTR) issued a formal statement regarding the joint review of the Agreement between the United States of America, the United Mexican States, and Canada (USMCA). The USMCA entered into force on July 1, 2020, and contains a clause requiring that the parties meet on the sixth anniversary of the agreement to conduct a joint review of the operation of the agreement, evaluate any recommendations for action submitted by a party, and decide on any appropriate actions. While side discussions had been ongoing among the three countries, July 1 was the start of the first formal joint review. Upon the conclusion of these discussions, the USTR stated:
“The United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed. The United States will continue to engage with Mexico and Canada to address the Agreement’s shortcomings and our trade deficits with these countries. However, the Agreement remains in force pending resolution of these issues or until the Agreement’s termination.”
This statement does not provide any final outcome for the USMCA. The United States is expected to meet for bilateral negotiations with Mexico and, likely, with Canada in the near future to continue negotiations.
The 2020 USMCA could have been renewed for 16 years if all parties had agreed. With the USTR’s statement that the United States does not agree to renew the agreement in its current form, the USMCA does not terminate but will remain in effect for another ten years – until 2036 – under the terms of the agreement, unless one of the countries formally seeks to withdraw. The decision not to renew also triggers an annual review process that will allow for yearly discussions and negotiations by the parties.