USMCA: Negotiation Preparations

The United States-Mexico-Canada Agreement (USMCA) is a trilateral free trade agreement that went into effect on July 1, 2020, as a replacement for its predecessor, the North American Free Trade Agreement (NAFTA). (See https://www.congress.gov/crs-product/R48787). The three involved governments are preparing to initiate the first formal joint review in July 2026 as part of the sixth anniversary of the agreement entering into effect.

Under Article 34.7 of USMCA, the nations must assess how the pact is functioning and decided if they would like to continue the Agreement for a new 16-year term. If any party decides not to extend the term of the agreement, the commission must conduct a joint review every year for the remainder of the 16-year agreement until a consensus is reached for renewal, or USMCA is terminated. (See https://ustr.gov/sites/default/files/files/agreements/FTA/USMCA/Text/34_Final_Provisions.pdf).