USMCA 2026 Joint Review: United States declines to extend Agreement, triggering annual reviews
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On July 1, 2026, the USMCA Free Trade Commission held its mandatory six-year joint review under Article 34.7 of the Agreement. The United States declined to confirm its intention to extend the Agreement for an additional 16-year period, stating that it “did not agree to renew the USMCA in its current form.” This decision triggers the annual joint review process under Article 34.7.4, which will proceed each year until the Parties either agree to an extension or the Agreement expires on July 1, 2036.
Critically, the Agreement remains fully in force, and the 16-year extension is not foreclosed, it remains available at any time through a written confirmation by the three heads of government pursuant to Article 34.7.4. The next bilateral negotiating round between the United States and Mexico is scheduled for the week of July 20 in Mexico City. Although Canada participated in the July 1 Commission meeting, it has not yet begun substantive text-based negotiations with the United States.
What happened on July 1, 2026
Article 34.7.2 of the United States-Mexico-Canada Agreement (USMCA) requires the Free Trade Commission to conduct a “joint review” of the Agreement on the sixth anniversary of its entry into force. The Commission met virtually on July 1 for that purpose. In a statement issued the same day, USTR Ambassador Jamieson Greer confirmed that the United States “did not agree to renew the USMCA in its current form”1 In contrast, Mexico and Canada each confirmed their support for extending the Agreement for an additional 16-year period.2
What does this mean for the USMCA?
The Agreement remains in full force
Notwithstanding USTR’s statement that “the USMCA is not renewed,” the Agreement has neither lapsed nor expired. Under Article 34.7.1, the Agreement has a 16-year term from its entry into force, running through July 1, 2036. What did not occur on July 1 was the optional decision to extend the Agreement beyond July 1, 2026. All current USMCA rights and obligations, including preferential tariffs, rules of origin, investment protections, and dispute settlement mechanisms, remain fully operative.
What Article 34.7.4 now triggers
Because the United States did not confirm its desire to extend the Agreement at the joint review, Article 34.7.4 is now activated. Two immediate consequences follow:
- Annual joint reviews. The Free Trade Commission must now conduct a joint review every year for the remainder of the Agreement’s 16-year term, meaning annually through or before July 1, 2036; and
- “At any time” extension pathway. Article 34.7.4 also provides that the Parties may extend the Agreement for an additional 16-year period at any point before its expiry by confirming that intention in writing through their respective heads of government. No formal renegotiation is required. This mechanism is the primary pathway to reinstating a 16-year extension and will be a key provision to monitor in the coming months or at each annual review.
Negotiating status: bilateral track
Until now, the United States has opted to pursue separate bilateral negotiations with Mexico and Canada rather than a unified trilateral process. The United States and Mexico have already completed two bilateral rounds and scheduled a third:
- Round 1 (Mexico City, May 28-30, 2026): Discussions covered automotive rules of origin, steel and aluminum, and economic security issues. Both delegations agreed on a schedule for subsequent rounds.3
- Round 2 (Washington, D.C., June 16-17, 2026): Negotiators advanced discussions on rules of origin for certain industrial goods and economic security, and commenced conceptual discussions on agriculture, labor, and the environment, as well as trade in steel, aluminum, and automobiles.4
- Round 3 (Mexico City, week of July 20, 2026): USTR has confirmed this round will focus on resolving outstanding issues. Canada has not been announced as a participant.
Canada’s position
Canada participated in the July 1 trilateral joint review meeting. Canada-US Trade Minister Dominic LeBlanc stated that the Parties “agreed on the importance of continuing our discussions,” and confirmed Canada’s priority of addressing US sectoral tariffs on steel, aluminum, autos, and lumber in substantive discussions with the United States.5 Canada had already signaled it support for a 16-year renewal in a June 1 letter from Minister LeBlanc to USTR Greer and Mexican Economy Secretary Ebrard.6
Key takeaways for companies with North American supply chains
- The USMCA remains in full force. Current tariff preferences, rules of origin, and investment protections are unaffected.
- The 16-year extension is deferred, not lost. The “at any time” extension mechanism of Article 34.7.4 remains available and is the critical provision to monitor.
- Annual reviews will now take place each year and could run through 2036, creating recurring decision points for agreeing to a new 16-year extension.
White & Case will continue to monitor developments and will provide further updates. For further information or tailored advice, please contact your usual White & Case representative or the authors above. The International Trade team at White & Case, in Washington, D.C. and Mexico City, has extensive experience advising clients on USMCA compliance, rules of origin, trade remedies, and investment protection. We stand ready to assist companies in assessing the implications of these developments for their North American operations and supply chains.
1 USTR, Ambassador Greer Issues Statement on the USMCA Joint Review, July 1, 2026, available at ustr.gov.
2 Statement by Canadian Trade Minister Dominic LeBlanc following trilateral CUSMA joint review meeting, July 1, 2026, available at canada.ca; statement by Mexico’s Economy Minister Marcelo Ebrard, July 1, 2026, available at x.com (in Spanish).
3 USTR, The United States and Mexico Conclude First Bilateral Round Related to the Joint Review of the USMCA, May 30, 2026, available at ustr.gov; Secretaría de Economía, México y Estados Unidos concluyen con saldo positivo la primera ronda formal de la revisión del T-MEC, available at gob.mx
4 USTR and Secretaría de Economía, Joint Statement from Ambassador Jamieson Greer and Mexican Secretary of Economy Marcelo Ebrard, June 17, 2026, available at ustr.gov and gob.mx
5 Statement by Minister LeBlanc following trilateral CUSMA joint review meeting, July 1, 2026, available at canada.ca
6 See the letter, “Canada’s Recommendations for the Joint Review of the Canada–United States–Mexico Agreement (CUSMA),” June 1, 2026, downloadable via the Government of Canada CUSMA news website.
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