US declines to renew the USMCA at its six-year review, shifting the pact to annual reviews through 2036

The United States did not agree to extend the United States-Mexico-Canada Agreement at the trade deal's six-year review on July 1, U.S. Trade Representative Jamieson Greer said, a decision that keeps the pact in force while moving it onto a year-by-year review schedule that runs until it expires in 2036.

"The United States did not agree to renew the USMCA in its current form. As a result, the USMCA is not renewed," Greer said in a statement issued after the three governments met virtually. He said the agreement "remains in force pending resolution of these issues or until the Agreement's termination," and that the United States would "continue to engage with Mexico and Canada to address the Agreement's shortcomings and our trade deficits with these countries."

What the decision does

USMCA took effect on July 1, 2020, replacing NAFTA. It carries a 16-year term with a scheduled joint review after six years. At that review, the three governments decide whether to extend the deal for a fresh 16-year term. If all three agree, the term resets. If any one declines, as the United States did, the agreement does not end. It stays in effect, and the countries review it every year until 2036, when a final review determines whether it continues.

A separate clause, Article 34.6, lets any member withdraw on six months' notice. No government has invoked it.

The practical effect of July 1 is procedural. No tariffs changed, no rules of origin changed, and the treaty text is unchanged. What changed is the calendar. Instead of a fixed 16-year runway, North American trade now runs on an annual review that can reopen parts of the deal each year.

Why the U.S. declined

Greer tied the decision to the U.S. trade deficit with Canada and Mexico, saying the agreement had not curbed the deficit as the administration intended. President Donald Trump has said his main objection to the pact is the size of those deficits, and a senior administration official said the president reserves the right to withdraw.

How Canada and Mexico responded

Ahead of the meeting, Canadian Prime Minister Mark Carney played down expectations. Speaking to reporters in Kuujjuaq, Quebec, he said he expected "a constructive exchange" and "wouldn't expect any drama."

Mexican President Claudia Sheinbaum had signed Mexico's position paper backing a full 16-year extension the day before. She said the deadline did not close the process. "The joint work continues. It's not as if everything ends today," she said, adding that the three countries could still agree to a 16-year extension later in the review period.

What to watch

The annual reviews now become the venue for the next round of talks. Greer said the United States wants to address what it calls the deal's shortcomings. Canada and Mexico said they favored the longer extension but are open to continued talks. The agreement stays in force while those reviews play out.