The first USMCA Review is scheduled for 2026 and will be the first process of its kind in any trade agreement in the world.

“The review is a virtue rather than a detriment, because it helps us to review whether indeed the objectives of the USMCA are being met or what things we could correct, improve or measure more adequately,” said Israel Morales, director of Index’s National Committee on U.S.-Mexico Relations and International Agreements.

Free Trade Agreement

The Index has among its objectives to promote Mexican exports and represents some 1,300 companies with the Maquiladora and Manufacturing Export Industry (IMMEX) program.

The USMCA is a free trade agreement that entered into force in July 2000 and replaced the North American Free Trade Agreement (NAFTA), which Mexico, the United States and Canada began operating in January 1994.

USMCA Review

Article 34.7 of the USMCA provides that this agreement will terminate 16 years after its entry into force. 

However, each party may confirm its desire to continue the agreement for a further 16-year period. This is done in accordance with the procedures of the agreement itself.

Thus, in July 2026, this important review will take place. For this, the Free Trade Commission will meet and will also consider the recommendations of the parties involved. It will then decide on appropriate action.

Policymakers will be watching. They will monitor the role of Congress in this meeting. Any recommended action can have a major impact. In addition, how these recommendations affect economic and political relations with Canada and Mexico will be evaluated.

It is relevant to mention that North America has a highly integrated manufacturing sector. Therefore, any changes to the USMCA could influence regional competitiveness.

No agreement

“We are facing a very unique scenario, because this is novel. No trade agreement in the world has these characteristics of the USMCA. So, we are all going to learn from this process: Canada, Mexico and the United States”, commented Morales.

If the trade agreement is not renewed in 2026, annual reviews will be carried out, starting in the sixth year and until the USMCA expires (16 years). 

During this period, the Parties may at any time confirm their intention to extend the Treaty for an additional 16 years.