The United States has decided not to approve an automatic 16-year extension of the USMCA at this stage, triggering the annual review process established under the trade agreement. The decision does not end the pact, which remains in force through 2036 while the three member countries address pending issues.
The position was presented during a virtual meeting of the USMCA Free Trade Commission. The Office of the U.S. Trade Representative said the agreement would not be renewed in its current form, but confirmed that it will remain active as negotiations continue with Mexico and Canada.
Canada reaffirmed its support for the agreement, emphasizing its role in regional trade and employment across North America. Canadian officials also noted that the pact can still be extended at any point if all three partners agree.
In Mexico, Economy Secretary Marcelo Ebrard said the outcome had been anticipated and stressed that the agreement remains fully valid. He explained that, six years after the USMCA entered into force, the treaty allows either an automatic 16-year extension or, if one country declines, annual reviews until 2036.
The next phase is expected to begin around July 20, when U.S. officials travel to Mexico for further bilateral talks under the formal review process. According to Ebrard, the United States has narrowed its list of pending issues from 54 to 14, while Mexico will bring 13 proposals to the table.
Mexico’s priorities include removing tariffs on steel, aluminum and the automotive sector, maintaining current rules of origin, and strengthening regional supply chains to reduce dependence on imports from Asia.
Although annual reviews could create some uncertainty for businesses and investors, Mexican officials said the scenario had already been considered. Their stated goal is to establish clear rules for the review process and preserve trade certainty across North America.
Source: El Financiero
