On July 1, 2026, the United States announced its decision not to extend the Canada-United States-Mexico Agreement (CUSMA) in its current form. U.S. Trade Representative Jamieson Greer stated that the agreement would remain in force, but subject to annual reviews for up to a decade. This decision follows a virtual meeting with Canadian Trade Minister Dominic LeBlanc and Mexican Economy Minister Marcelo Ebrard. The move introduces uncertainty for businesses across North America, particularly in sectors like automobiles, which are deeply integrated across supply chains. While the agreement remains active until 2036, it can be renewed at any time for another 16-year period.
The U.S. administration cited concerns over trade deficits and market access issues with Canada and Mexico as key factors in its decision. A senior U.S. official noted that the U.S. trade deficit with Mexico was nearly $197 billion in 2025, while the trade gap with Canada was over $46 billion. The official emphasized the need to address these issues through ongoing negotiations.
In response, Canadian officials have expressed a desire to continue discussions to address the agreement's shortcomings and trade imbalances. Trade Minister LeBlanc highlighted the importance of the agreement in supporting jobs and providing stable access to U.S. and Mexican markets. He emphasized Canada's commitment to engaging with both the U.S. and Mexico to resolve these issues.
The decision to not extend CUSMA in its current form initiates a rolling annual review process, which could last up to a decade. During this period, the agreement remains in effect unless a country decides to withdraw entirely. The outcome of these negotiations will significantly impact North American trade relations and economic stability.
For more insights into the ongoing trade discussions, you can watch the following interview with Prime Minister Mark Carney:
[Carney says US "violated" CUSMA; trade talks at "negotiations about negotiations" stage](