USMCA Review Process

U.S. Domestic Process Prior to the Review ²

• October 4, 2025. The USTR begins the public consultation process, 270 days before the start of the trilateral review. As part of this process, USTR is required to hold at least one public hearing.
• By January 3, 2026, USTR must submit a report to the U.S. Congress outlining its assessment, recommendations, and position regarding the potential extension of the USMCA.

Agencies Leading the Review Process

• 🇨🇦 Global Affairs Canada (Canada)

¹ According to Article 34.7 of the USMCA agreement, the agreement must be reviewed by the parties every six years, with the possibility of extending its term for an additional 16 years. If no extension is agreed upon, annual reviews must be conducted thereafter.
² As detailed in the USMCA Implementation Act and its Statement of Administrative Action (SAA). https://www.finance.senate.gov/imo/media/doc/FINAL%20SAA%20USMCA.pdf 

Post-2026 Review Scenarios

Early Review Options (Outside the Formal Timeline)

• Governments may initiate bilateral consultations or preparatory discussions before July 2026; while these early actions do not replace the formal joint review, they can influence its content, accelerate its momentum, or even pave the way for deeper negotiations or a potential renegotiation.

Review vs. Renegotiation under the USMCA: Scope, Differences, and Scenarios

Summary of Legal Framework

Article 34.7: Review and Extension of Term

1. This Agreement shall terminate 16 years after the date it enters into force, unless each Party confirms that it wishes to continue the Agreement for a new 16-year term, in accordance with the procedures set out in paragraphs 2 through 6.

2. On the sixth anniversary of the entry into force of this Agreement, the Commission shall meet to conduct a “joint review” of the functioning of the Agreement, consider any recommendations for action submitted by a Party, and decide on appropriate actions. Each Party may submit recommendations for the Commission to consider at least one month prior to the joint review meeting.

3. As part of the Commission’s joint review, each Party shall confirm in writing, through its head of government, whether it wishes to extend the term of this Agreement for another 16-year period. If each Party confirms its desire to extend the Agreement, the term shall be automatically extended for another 16 years, and the Commission shall conduct a joint review and consider the extension of the Agreement’s term no later than the end of the next six-year period.

4. If, as part of a six-year review, a Party does not confirm its desire to extend the term of this Agreement for another 16-year period, the Commission shall meet to conduct a joint review every year for the remainder of the Agreement’s term. If one or more Parties did not confirm their desire to extend the Agreement at the conclusion of a joint review, the Parties may, at any time between that review and the expiration of the Agreement, automatically extend its term for another 16 years by confirming in writing, through their respective heads of government, their desire to extend the Agreement for an additional 16-year period.

5. At any time, the Parties decide to extend the term of this Agreement for another 16-year period, the Commission shall conduct joint reviews every six years thereafter. The Parties shall have the opportunity to extend the Agreement after each joint review, in accordance with the procedures set out in paragraphs 3 and 4.

6. At any time when not all Parties confirm their desire to extend the term of this Agreement, the provisions of paragraph 4 shall apply.

Annex 3 – Article 34.3: Amendments

The Parties may agree, in writing, to amend this Agreement.

An amendment shall enter into force 60 days after the date on which the last Party has notified the other Parties in writing of its approval of the amendment in accordance with its applicable legal procedures, or on any other date the Parties agree on.

Annex 4 – Article 31: Dispute Settlement

Chapter 31 of the USMCA outlines the mechanism through which the Parties may resolve disputes. It outlines the process through which a Party may request consultations, resort to good offices or mediation, and, if the dispute is not resolved, establish an arbitral panel to determine whether there has been a breach of the agreement.

The chapter includes provisions on panel composition, rules of procedure, final reports, compliance mechanisms, and possible sanctions such as the suspension of benefits if a ruling is not complied with. It was strengthened in the 2019 Protocol of Amendment to ensure the effective functioning of the panels.

USMCA Historical Timeline

Legal Mechanisms for Early Review and Dispute Settlement under the USMCA

• The United States has the legal and political framework to initiate an early review of trade commitments with Mexico through the consultations process established under the USMCA. This authority is provided in Chapter 31³ of the agreement and supported by U.S. domestic legislation, specifically the USMCA Implementation Act (Public Law 116-113).⁴
• Chapter 31 allows any party to request consultations if it believes that a measure adopted by another party is inconsistent with the agreement. It is not necessary to demonstrate economic harm or to exhaust other remedies before requesting consultations. It is sufficient for a party to perceive that an action may affect the benefits agreed upon.
• Following a request, the parties have 30 days to engage in dialogue and reach an agreement. If no solution is achieved, the complaining country may request the establishment of an independent panel to examine the case and issue a binding ruling. If that ruling is not implemented, trade retaliation measures, such as tariffs, may be applied.
• Although the agreement does not establish a strict time limit between the consultation request and the request for a panel, an informal standard of 60 to 75 days has been adopted in practice before escalating a dispute. This pattern has been observed in cases such as:  genetically modified corn, the automotive rules of origin dispute, and various labor mechanisms. Even the announcement of a consultation—regardless of whether it escalates to a panel—exerts diplomatic and commercial pressure on the responding country.
• On the other hand, Public Law 116-113 grants the President and the USTR full authority to implement the agreement within the U.S. legal system. This means that the USTR may be instructed to activate the consultation mechanism without requiring congressional approval.
• Additionally, the same law includes specific provisions for the joint reviews established in Article 34.7 of the agreement, which assess whether the USMCA should be extended beyond its initial term. Section 611 of the law stipulates that at least 270 days prior to each joint review, the USTR must publish a notice in the Federal Register and initiate a public consultation process.
• In addition, at least 180 days prior to the review, the USTR must submit a report to Congress outlining its assessment of the agreement, its policy recommendations, and its position on whether the USMCA should be renewed.
• If one of the treaty’s parties does not confirm its intention to extend the USMCA, the USTR is required to inform Congress—at least 70 days before the next annual review—of the reasons that party has given for its position. This confirms that, in addition to formal dispute resolution procedures, institutional tools exist to condition or block the extension of the agreement if any party deems it unsatisfactory or unfavorable.
• In summary, the USMCA’s enforcement framework is not only legally operational but can also be activated as a strategic tool. At the same time, the joint review process offers an additional platform to exert pressure or renegotiate commitments without waiting for the agreement to expire.

³ Chapter 31 of the USMCA – Dispute Settlement (official treaty text in English, USTR website): https://ustr.gov/sites/default/files/files/agreements/FTA/USMCA/Text/31%20Dispute%20Settlement.pdf  
⁴ Public Law 116-113 – USMCA Implementation Act (full text available at Congress.gov): https://www.congress.gov/bill/116th-congress/house-bill/5430/text   

Sources

[1] United States-Mexico-Canada Agreement (USMCA), Official Text: https://ustr.gov/trade-agreements/free-trade-agreements/united-states-mexico-canada-agreement/agreement-between 
[2] IMCO – “Four Years of the USMCA”: https://imco.org.mx/a-cuatro-anos-del-t-mec/

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