Canada seeks clarity after US opts for annual USMCA review

Days after the Trump administration decided to require annual reviews of the United States-Mexico-Canada Agreement instead of renewing it in its current form until 2042, the Canadian government said significant uncertainty remains over the next steps in trade negotiations.

“We don’t have any more predictability about the annual review process because this is somewhat uncharted territory. It’s not typical for this kind of agreement,” Canada-U.S. Trade Minister Dominic LeBlanc said.

LeBlanc said he asked U.S. Trade Representative Jamieson Greer how he intended to structure discussions as part of the annual review. He said the request was made jointly with Mexican Economy Secretary Marcelo Ebrard.

“There wasn’t an answer at the meeting. It was agreed that we would continue the conversation over the coming weeks,” the minister said of the July 1 meeting, when the United States confirmed it would pursue annual reviews of USMCA.

Canada and Mexico had hoped the agreement, in its current form, would remain in place for another 16 years. Instead, Washington wants changes, saying the current version has run its course.

The U.S. decision set in motion a renewable annual review process that could last up to 10 years. At the end of that period, the agreement would expire if no path forward is found to extend it beyond 2036.

Exactly how those annual reviews will be conducted has yet to be determined.

Ebrard said in a video posted to X on July 1 that the road map outlining what the annual review will include has yet to be defined.

So far, USMCA has largely shielded Canada and Mexico from most of the tariffs imposed by U.S. President Donald Trump because a broad exemption remains in place for goods that comply with the agreement.

That protection is not complete, however, and Canada and Mexico are each pursuing bilateral agreements with the United States alongside the three-country negotiations.

From Canada’s perspective, the bilateral talks could help reduce U.S. tariffs that fall outside USMCA’s protections, including those on steel, aluminum and softwood lumber.

Mexico expects to host a U.S. delegation during the week of July 20 as part of its own bilateral negotiations with the U.S.

Canada has not yet announced a date for a similar meeting.