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United States Rejects 16-Year USMCA Renewal but Keeps Pact in Force Until at Least 2036
The United States decided on the July 1 deadline not to extend the United States-Mexico-Canada Agreement for another 16 years. The existing pact stays in force until at least 2036 and shifts to annual reviews. Bilateral talks with Mexico continue while none have started with Canada.
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The United States will not renew the United States-Mexico-Canada Agreement for a new 16-year term. The decision was announced on the July 1, 2026, deadline for the three countries to decide on an extension. The USMCA will remain in effect and undergo yearly reviews instead.
It will stay in force until at least 2036 unless a country withdraws or a new agreement is reached. Canada and Mexico had both sought the 16-year renewal. U.S. Trade Representative Jamieson Greer stated the United States did not agree to renew the USMCA in its current form.
A senior administration official said the primary concern centers on U.S. trade deficits with Canada and Mexico. The United States will continue to engage with Mexico and Canada to address the agreement's shortcomings, Greer stated.
The U.S. and Mexico have already held two rounds of bilateral talks, with a third round scheduled for the week of July 20, 2026. The U.S. and Canada have not begun formal bilateral trade talks under the new review process, according to CNBC reporting.
The USMCA replaced the North American Free Trade Agreement and took effect in July 2020. Goods and services trade within North America reached nearly $2 trillion in 2024. President Trump decided not to renew the USMCA.
The USMCA will not expire for at least 10 years after the July 1, 2026, non-renewal decision.
