Mexico and the United States formally launched the review process of the United States–Mexico–Canada Agreement (USMCA) on Wednesday. Mexico’s Secretary of Economy, Marcelo Ebrard, held a meeting in Washington with U.S. Trade Representative Jamieson Greer.
The meeting assessed the current state of the bilateral trade relationship between the two countries. Authorities reported at the end of the talks that political and technical conditions exist to move the process forward.
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Mexico and the U.S. agree to begin the USMCA review
Both governments announced the start of formal conversations on potential structural and strategic reforms to the trade agreement. The Office of the United States Trade Representative stated that the parties recognized substantial progress in recent months.
Authorities agreed to continue intensive collaboration to address non-tariff barriers. Negotiating teams included rules of origin for industrial goods on the agenda. Governments incorporated cooperation on critical minerals and efforts to combat dumping in manufacturing. Delegations also added the defense of labor rights and producers in both countries to the review.
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Marcelo Ebrard reported that the meeting lasted approximately one hour. The official explained that the discussion focused on defining the next steps in the review process. He noted that preparatory work would allow negotiations to move at a faster pace.
The Secretary of Economy indicated that the agenda included tariffs on steel and aluminum. The official said the automotive industry was a central part of the dialogue. The parties addressed supply chain security and the future of critical minerals.
What will happen with Canada?
Canada announced that it has concluded its internal consultations to begin the review process. The Canadian government confirmed its readiness to start negotiations, with a target date of July 1. The announcement reduced uncertainty over the continuity of the North American trade agreement. President Donald Trump has previously expressed opposition to the treaty. Trump recently described the USMCA as irrelevant to his country. The president also threatened Canada with new tariffs following its trade outreach to China.
The three countries now face the first review of the agreement since its entry into force. The process will determine whether the treaty is extended for an additional 16 years or enters a system of annual reviews. Mexico and Canada seek to secure the agreement’s long-term validity. Mexico’s President Claudia Sheinbaum held prior meetings with Canadian Prime Minister Mark Carney. Both governments agreed to coordinate positions ahead of the treaty’s renewal.
Why is it so important?
The USMCA is the trade agreement that replaced the North American Free Trade Agreement in 2020. The instrument regulates the exchange of goods and services among Mexico, the United States, and Canada. The treaty establishes rules in sectors such as manufacturing, energy, agriculture, and digital trade. The agreement includes binding labor and environmental commitments.
The USMCA represents one of the largest economic blocs in the world. The agreement accounts for nearly 29 percent of global gross domestic product. Mexico relies on the treaty for more than 80 percent of its exports. The United States and Canada use the agreement as a platform for regional supply chains. The review process will define the trade stability of North America in the coming years.
