U.S. President Donald Trump ordered the start of public consultation on the USMCA.
The United States is the largest trading and investment partner of Canada and Mexico, and the Canadian and Mexican economies are significantly affected by developments in the U.S. economy.
On July 1, 2020, the USMCA, a trilateral free trade agreement between the United States, Mexico and Canada, entered into force. The USMCA replaced the North American Free Trade Agreement, which had been in place since 1994.
Public consultation on the USMCA
In the America First Trade Policy memorandum signed Monday, Trump directs the U.S. Trade Representative to initiate the public consultation process regarding the USMCA in preparation for the July 2026 review of the USMCA.
In addition, Trump directed the Trade Representative, in consultation with the heads of other relevant executive departments and agencies, to assess the impact of the USMCA on U.S. workers, farmers, ranchers, service providers and other U.S. businesses and make recommendations on U.S. participation in the agreement.
Six-Year Review
The USMCA includes a provision that establishes a joint review process. Through this process, the three parties involved will confirm whether they wish to continue with the agreement. This is the first time such a provision has been included in a U.S. trade agreement.
The first joint review is scheduled for July 1, 2026. If, at that time, the three countries do not reach an agreement to extend the USMCA, the agreement will end in 2036.
If any of the parties decide not to accept the extension of the USMCA, annual joint reviews will be conducted. These reviews will continue until all parties agree to extend the agreement for a further 16-year period. After this period, the parties will enter into a six-year joint review cycle. If no agreement is reached, the USMCA will terminate.
Additionally, Trump directed the Trade Representative, in consultation with the Secretary of the Treasury, the Secretary of Commerce and the Senior Trade and Manufacturing Advisor, to conduct a review and will identify any unfair trade practices by other countries and recommend appropriate actions to remedy such practices.