The U.S. Trade Representative’s (USTR) Office has kicked off the next stage of its review of the United States-Mexico-Canada Agreement (USMCA), launching a comment period ahead of the agreement’s next joint review.
The agency is looking for input on how the pact is being put into practice and adhered to, and its broader effects on the North American economic landscape, according to a Monday filing in the Federal Register.
Comments are due January 12, 2027. The USTR also plans to hold a public hearing, though no date has been set yet.
The move comes after the U.S. decision not to extend the USMCA earlier this year, beginning a more formal negotiation process between the three North American trading partners.
A sharply different trade landscape
The next phase of the review comes as U.S. trade relations with Canada and Mexico have taken notably different paths.
Washington and Ottawa are currently engaged in a major trade dispute following the introduction in August of a 50% U.S. tariff on $20 billion worth of Canadian imports.
The two governments had held negotiations before the duties took effect, but Canadian Prime Minister Mark Carney subsequently withdrew his negotiators and introduced retaliatory tariffs in September.
The dispute then escalated after President Donald Trump expanded the scope of the 50% tariffs and imposed an import ban covering certain Canadian alcohol, dairy-related products and motor-vehicle imports.
Relations between Washington and Mexico, meanwhile, have remained focused on negotiations under the USMCA framework.
Representatives from the two countries held their third round of bilateral discussions in late July. More recently, Mexican Economy Secretary Marcelo Ebrard met U.S. Trade Representative Jamieson Greer for an hour on the sidelines of the G20 Trade Ministerial in Milwaukee.
Ebrard described the discussions positively, saying the two countries were getting closer on a number of issues and continuing to make progress toward resolving outstanding differences.
Annual reviews now required
The decision not to extend the USMCA this year has important consequences for the agreement’s future.
Because the United States, Canada and Mexico failed to reach an extension, the three countries must now participate in a joint review every year until they reach an agreement or the pact expires in 2036.
The next formal review is scheduled for July 1, 2027.
The newly opened public consultation therefore represents an important step toward that deadline, giving businesses and other stakeholders an opportunity to weigh in on the agreement’s implementation, compliance and economic impact before the next round of trilateral review.
