US Declines to Renew USMCA Extension as Mandatory Review Process Begins

On Wednesday, the United States is expected to formally notify Canada and Mexico of its intentions regarding the US-Mexico-Canada Agreement (USMCA), known in Canada as CUSMA. According to CTV News, the Trump administration is expected to miss the July 1 deadline to support a 16-year extension of the agreement.

Canada and Mexico have both indicated they want to renew the pact. However, the July 1 deadline triggers only the agreement’s mandatory review process, and USMCA will remain in force regardless of whether the US agrees to extend it.

Without US support for an extension, the agreement enters an annual review process that can continue for up to 10 years. If the three countries fail to renew the agreement during that period, USMCA would expire at the end of the review window.

US Trade Representative Jamieson Greer has said key elements of the agreement are working well but has also indicated he would be open to negotiating separate bilateral trade agreements with Canada and Mexico. USMCA-compliant goods remain exempt from the current 10% US global tariff, providing continued protection for much of North American trade.