The United States has notified its North American trading partners that it will not renew the U.S.-Mexico-Canada Agreement in its current form following the agreement’s required six-year joint review, reports said on Wednesday.
The decision came after a virtual meeting of the USMCA Free Trade Commission, which includes representatives from the United States, Mexico, and Canada.
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The USMCA took effect on July 1, 2020, replacing the North American Free Trade Agreement. It was negotiated during President Donald Trump’s first term under his guidance.
The trade pact includes a review mechanism under Article 34.7 requiring the three countries to conduct a joint assessment during the sixth year after the agreement entered into force to determine whether it should continue unchanged.
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Under the agreement’s review process, the USMCA would automatically be extended for another 16 years if all three countries formally agreed in writing to continue the pact.
Because the United States declined to do so, the agreement will remain in effect but will enter a period of annual joint reviews.
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Those reviews will continue until the three nations agree to a 16-year extension or until the agreement expires on July 1, 2036, under its sunset provision, according to reports.
“The United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed,” U.S. Trade Representative Jamieson Greer said following Wednesday’s meeting.
“The United States will continue to engage with Mexico and Canada to address the Agreement’s shortcomings and our trade deficits with these countries,” he added.
“However, the Agreement remains in force pending resolution of these issues or until the Agreement’s termination,” Greer continued.
“As previously announced, the United States will meet with Mexico the week of July 20 for a third round of bilateral negotiations related to the USMCA joint review,” he said.
One senior administration official stated that President Trump “chose not to rubber stamp a USMCA renewal without addressing existing issues.”
The official said Trump is concerned about ongoing trade deficits with both Mexico and Canada.
The official noted that the president “has already changed the nature of the U.S.-Canada-Mexico trading relationship.”
During an Oval Office session with reporters this week, Trump said that, if anything, the U.S. should be running a trade surplus with both countries, adding that neither fof them “have anything we need.”
U.S. trade data for 2025 show a goods trade deficit of $196.9 billion with Mexico and $46.4 billion with Canada. Combined trade in goods and services among the three USMCA partners totals nearly $2 trillion each year.
U.S. officials have argued that the agreement should be updated to address issues including rules of origin—particularly for automobiles and other manufactured products—as well as broader economic security concerns.
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The administration has also sought stricter North American content requirements and measures designed to prevent countries outside the agreement, including China, from benefiting indirectly from its trade provisions.
The decision not to renew the agreement in its current form does not immediately alter or terminate the USMCA.
The trade pact remains in force, allowing businesses to continue operating under its existing duty-free provisions and rules, although the move to annual reviews introduces additional uncertainty about the agreement’s long-term future.
The review process allows negotiations to continue while the USMCA remains in force through 2036 unless the three countries agree to extend the agreement for another 16 years or one of the parties withdraws, said reports.
The United States and Mexico are scheduled to hold a third round of negotiations during the week of July 20 in Mexico City.
The talks are expected to build on earlier discussions covering automotive rules of origin, steel and aluminum production, agricultural trade and broader economic security issues.
Separate negotiations between the United States and Canada are also continuing, reports noted.
This article may contain commentary which reflects the author’s opinion.
