WASHINGTON, D.C. — The administration of U.S. President Donald Trump is expected to formally notify its North American trading partners that it will not immediately extend the United States-Mexico-Canada Agreement (USMCA), activating a review process that could ultimately determine the future of the region’s free trade framework.
The expected declaration, due on Wednesday, will initiate the agreement’s six-year review mechanism under its sunset clause. Unless all three member countries agree to extend the pact, the process could eventually lead to the agreement expiring after a 10-year period.
The move does not immediately terminate the USMCA but signals that negotiations over major revisions to the trade deal are set to intensify.
Review process begins
The USMCA, which came into force in 2020, replaced the North American Free Trade Agreement (NAFTA) and introduced a requirement for periodic reviews every six years.
Trade officials from the United States, Mexico and Canada are expected to hold a virtual meeting to discuss whether the agreement should be renewed for another 16 years.
Despite the review process, negotiations are expected to continue over several contentious issues, including automotive manufacturing rules, regional content requirements and measures aimed at preventing Chinese goods from entering North American markets through member countries.
U.S. Trade Representative Jamieson Greer has already scheduled another round of trade discussions with Mexican officials later in July, indicating that Washington intends to pursue significant changes to the agreement.
Trump pushes for tougher trade rules
Although President Trump previously described the USMCA as one of the most beneficial trade agreements signed by the United States, his administration has increasingly argued that the pact has failed to reduce America’s trade imbalance with Mexico.
The White House maintains that stronger trade rules
U.S. Set to Trigger USMCA Review Process as Trade Talks With Canada and Mexico Intensify
