USMCA panel non-compliance will affect the USMCA review scheduled for 2026, according to the Canadian Chamber of Commerce.

From their perspective, Canada, the United States and Mexico should, whenever possible, attempt to resolve outstanding disputes through the use of the formal mechanisms of the USMCA.

Panel non-compliance

This House also felt that all three nations should reaffirm their commitment to compliance with dispute settlement findings. 

Failure to comply with the findings of the USMCA dispute settlement mechanisms reduces confidence in the Agreement itself and will make “a more contentious review” of the USMCA more likely. 

As such, the Canadian Chamber of Commerce suggested that the three Parties to the Agreement should avoid looking to the upcoming 2026 review as a means to address disputes. 

To note: Key disputes include those related to Mexico’s protectionist energy policies, Mexico’s restrictions on genetically modified corn, and the U.S. method for calculating vehicle rules of origin.

Investments

In the USMCA, it was agreed that the investor-state dispute settlement mechanism will not apply to Canada. In the case of Mexico and the United States, it does apply, but in a limited way compared to how it operated in the North American Free Trade Agreement (NAFTA).

The Canadian Chamber of Commerce is Canada’s largest business association, comprising a network of 400 chambers and representing nearly 200,000 businesses of all sizes and in all sectors and regions of our country. 

For Canadian business, North American economic cooperation and a successful review of USMCA are a top priority. 

Since last fall, the Canadian Chamber has launched a new engagement initiative in the United States to create opportunities for its members to express their views on the upcoming review, as well as many other aspects of the North American economic relationship. 

This has included three business-led trade missions to the United States in key areas where there are significant opportunities for growth and synergy with the U.S. economy. 

These missions have focused on critical minerals, life sciences supply chain resilience, North American economic security and artificial intelligence.