On July 1, 2026, the United States, Mexico, and Canada held the first joint review of the Agreement between Mexico, the United States, and Canada (USMCA) required under Article 34.7 of the treaty, in which the Office of the United States Trade Representative (USTR) confirmed that Washington did not agree to renew the agreement in its current form. This does not mean the treaty has ended; the USTR's own statement notes that the USMCA remains in force while pending issues are resolved or until its eventual termination.

WHAT HAPPENED ON JULY 1, 2026?

The three countries met virtually under the USMCA Free Trade Commission to review the operation of the agreement. Jamieson Greer, United States Trade Representative, stated that his country did not agree to renew the treaty in its current form, citing the need to address shortcomings in the agreement and trade deficits with Mexico and Canada.

Mexico's Secretary of Economy, Marcelo Ebrard, confirmed that the treaty will remain in force for the next ten years (through 2036) under an annual review scheme, and that there will be no immediate changes to the current rules. Canada's Minister of Trade, Dominic LeBlanc, in turn, reaffirmed his country's support for the USMCA. The USTR also confirmed that the United States will hold a third round of bilateral negotiations with Mexico during the week of July 20, 2026, as part of this joint review process.

MAIN TOPICS IN THE REVIEW

Mexico and the United States had already held prior bilateral rounds ahead of this review. In June, progress was reported in discussions on rules of origin for certain industrial goods, economic security, agriculture, labor, and environment. The Mexican delegation has indicated there is no rush to close the process and that the goal is to reduce uncertainty for businesses.

IMMEDIATE IMPLICATIONS FOR FOREIGN TRADE

For now, there is no automatic elimination of tariff preferences, nor any immediate change in the application of USMCA certificates of origin. Companies should continue operating under the current rules, but with greater attention to documentary compliance.

We recommend strengthening the following starting now:

• USMCA origin files, including BOM, input traceability, supplier declarations and/or certificates of origin, RVC calculation support, origin studies, and other related documentation.
• Mapping of sensitive tariff classifications, especially automotive, auto parts, steel, aluminum, electrical/electronic goods, agribusiness, and goods with Asian-origin inputs.
• Analysis of exposure from non-originating suppliers, particularly where inputs from China or other economies outside the USMCA zone are involved.
• Review of issued and received certificates of origin, to confirm there is sufficient support in the event of audits or origin verifications.
• Consider tariff impact scenarios, in case rules of origin are tightened or certain preferential benefits are reduced.
• Monitoring of the third round of Mexico–United States bilateral negotiations, scheduled for the week of July 20, 2026, and its outcomes on origin, automotive, steel, aluminum, copper, and agriculture.

J .A. DEL RÍO offers a wide array of specialized consulting services to assist you with these and other matters, in order to ensure that your project complies with the applicable characteristics  contained in this agreement.

If you have any questions, J.A. DEL RÍO can provide you with our experts to advise in matters concerning compliance with your legal and tax obligations. Once again, please let us know if we may be of any further assistance to you at: contacto@jadelrio.com.