U.S. Declines to Renew CUSMA
Published July 2, 2026
Key Points
- The U.S., Mexico, and Canada held a mandatory joint review of USMCA on July 1, 2026, as required under the Agreement.
- The U.S. did not agree to renew USMCA in its current form; USTR Jamieson Greer confirmed the agreement “is not renewed.”
- USMCA remains legally in force pending resolution of outstanding issues or eventual termination.
- Washington will hold a third round of bilateral negotiations with Mexico the week of July 20.
The United States, Mexico, and Canada met virtually on July 1, 2026, to conduct USMCA’s mandatory six-year joint review. USTR Ambassador Jamieson Greer confirmed, “the U.S.did not agree to renew the USMA in its current form”. The announcement doesn’t end the pact, but it does move USMCA into a less certain phase: USMCA remains in effect, though its long-term future now depends on further talks rather than an automatic 16-year extension. It enters annual joint reviews, and if no extension is agreed before July 1, 2036, USMCA will expire.
What Happens Next?
- USMCA stays in effect for now; no tariffs or legal terms change immediately.
- The U.S. and Mexico will hold a third round of bilateral talks the week of July 20, as part of the joint review process.
- Formal bilateral talks between the U.S. and Canada haven’t started yet.
- If the parties don’t later agree to extend it, USMCA is due to expire in 2036, rather than getting the 16-year renewal.
Background
United States-Mexico-Canada Agreement (USMCA) entered into force on July 1, 2020, replacing NAFTA. The Agreement undergirds nearly $2 trillion in U.S. goods and services trade within the region, and exports to Mexico and Canada are estimated to support close to three million U.S. jobs, with Mexico ranking as the United States’ second-largest export market and third-largest trading partner.
Under the Agreement’s terms, the three governments were required to hold a joint review on July 1, 2026, to decide whether to extend USMCA’s term, and as confirmed in Ambassador Greer’s statement, the U.S. did not agree to renew it in its current form.
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