Mexico, the United States, and Canada are preparing for the joint review of the USMCA scheduled for July 1, 2026.

The USMCA entered into force on July 1, 2020, replacing NAFTA under Implementation Act H.R. 5430/Public Law 116-113 in the United States.

The Agreement provides for a mandatory joint review six years later, on July 1, 2026. On that date, Mexico, the United States, and Canada will evaluate its performance, make recommendations, and decide whether to extend its validity for another 16 years.

Joint review of the USMCA

From the U.S. government’s perspective, the USMCA review will assess whether the rules of origin, especially the Labor Content Value requirements, are meeting their objectives. It could also allow for adjustments to regulations that promote higher wages in regional production.

In addition, the U.S. Executive Branch will analyze the impact of the Agreement on workers, farmers, and businesses. It will submit recommendations to Congress to ensure fair and beneficial trade for all sectors.

A recent Joint Statement by Mexico, the United States, and Canada recognizes that the USMCA has improved economic well-being in North America. 

Strategic factors

Mexico’s Secretary of Economy, Marcelo Ebrard, anticipates a difficult review of the USMCA in 2026, but projects less uncertainty for investments in Mexico. Negotiations will seek to strengthen North America’s competitiveness and supply chain security.

Ebrard has emphasized that Mexico and the United States will consolidate strategic and structural factors of the agreement. Despite the challenges, he expects greater clarity during 2026, which will favor private investment and allow for progress in trade relations and bilateral cooperation in various sectors.

The USMCA entered into force on July 1, 2020, with an initial term of 16 years, until 2036. A mandatory review is conducted every six years.

If there is no consensus, the treaty remains in force but will automatically expire in 2036 if not renewed. If the parties agree to extend it, it will remain in force for another 16 years. In the event of partial disagreement, joint reviews will be conducted annually until an agreement is reached or until the treaty expires.