The United States Trade Representative’s Office (USTR) has initiated the formal review process of the United States-Mexico-Canada Agreement (USMCA) on Tuesday, September 16, opening a 45-day period for public comments and will hold a public hearing in November. This review, along with the subsequent negotiations next year, will be a key factor in redefining the economic relationship between the United States, Mexico, and Canada in the complex trading landscape.
Mexico’s Ministry of Economy stated it will publish guidance for soliciting comments in the Official Gazette on Wednesday and aims to complete the assessment of the agreement’s five-year effectiveness by the end of this year in preparation for negotiations in 2026, when the three countries will decide whether to extend the agreement.
On the other hand, Canada plans to begin industry consultations this fall, with Canadian Prime Minister Mark Carney scheduled to visit Mexico this week to meet with Mexican President Claudia Sheinbaum in hopes of solidifying bilateral relations before the review.
According to the terms of the agreement, the three countries must undergo a mandatory joint review in July 2026. If there is no agreement to extend, the agreement will terminate in 2036.
USMCA has become a “key barrier” for Canada and Mexico against Trump’s trade policies. While both countries were early targets of tariffs, as long as goods fall within the agreement’s scope, they are not subject to related tariffs. However, products such as steel, aluminum, and automobiles outside the agreement still incur tariffs.
Prime Minister Carney of Canada stated that this agreement puts Canada in an enviable position compared to other countries that have reached bilateral agreements with the Trump administration, such as the UK, Japan, and South Korea.
Next, the U.S. Trade Representative’s Office needs to submit a report to Congress assessing the operation of the agreement and whether the U.S. wishes to extend it and what modifications are intended.
According to U.S. estimates, USMCA covers nearly $2 trillion worth of goods and services in the North American region.
In terms of negotiation positions, Canada previously took a more confrontational stance but has eased in recent weeks. In contrast, Mexico has maintained a more low-key approach behind the scenes, allowing for more negotiation space.
Candace Laing, Chair and CEO of the Canadian Chamber of Commerce, stated, “For months, Canadian businesses have been grappling with the uncertainty brought by the current U.S. government’s trade policy approach. This erosive lack of predictability has weakened investment, planning, and long-term growth. The only way to restore confidence is to repair the existing framework currently under scrutiny: our North American trade agreement.”