U.S. sets 10-year path to wind down trade pact with Mexico and Canada

Reuters reported the decision. The Trump administration wants to amend the agreement to bring manufacturing jobs back to the United States and reduce trade deficits with its neighbors.

The decision, announced after a six-year review, keeps the agreement in force for another 10 years with annual reviews until it expires, unless the three countries agree to renew it with changes.

“The United States has not agreed to renew the USMCA in its current form ... The United States will continue to work with Mexico and Canada to address the agreement’s shortcomings and reduce trade deficits with those countries,” U.S. Trade Representative Jamieson Greer said.

Greer said bilateral talks with Mexico on the USMCA are planned in Mexico City after July 20. The talks will focus on strengthening rules of origin for vehicles and other manufactured goods, as well as on economic security to prevent other countries, including China, from using USMCA market access to their advantage.

Mexican Economy Minister Marcelo Ebrard said Mexico City wants to help address Washington’s concerns over job losses and trade deficits.

“I cannot identify any difference between Mexico, the United States and Canada that is so great that we cannot resolve it,” Ebrard said.

On July 1, 2026, he held online talks with Greer and Canadian Minister Dominic LeBlanc, who is responsible for trade relations with the United States.

LeBlanc said Canada would continue working to resolve U.S. tariffs on Canadian steel, aluminum, cars and lumber.

“We agreed on the importance of continuing our talks and finding ways to ensure that the trade and investment framework between Canada, the United States and Mexico continues to support North American prosperity and competitiveness,” he said.

Mexican President Claudia Sheinbaum said before Washington’s official statement that the USMCA could be extended at any time over the next 10 years if the parties reach an agreement.

“Joint work continues. This does not mean that everything ends today,” she said.

The USMCA was negotiated by Trump’s first administration to strengthen the 1994 North American Free Trade Agreement and underpins a highly integrated regional economy with annual three-way trade of about $1.6 trillion.

Earlier, Switzerland and India agreed on a free trade deal after 16 years of negotiations.

In March 2025, European Commission President Ursula von der Leyen and Prime Minister Narendra Modi agreed to conclude a free trade agreement between the EU and India by the end of 2025.

In January 2026, the European Union and India agreed to create a free trade area after nearly 20 years of negotiations.

On July 1, 2026, a Comprehensive Economic Partnership Agreement between Ukraine and the United Arab Emirates took effect, creating a free trade area between Ukraine and the UAE by removing tariffs.