Have a read of this briefing by a law firm on USMCA, it’s a bit stale but still very useful in understanding the agreement.
The three parties to the United States – Mexico – Canada Agreement (USMCA) are beginning domestic consultations ahead of the scheduled 2026 joint review, which could lead to changes in the agreement. Under a novel provision in USMCA Article 34, the 2026 review also starts a 10-year clock for...
www.whitecase.com
When I read this - it’s now clear that even if Trump decides to ‘walk away’ from USMCA in July of 2026, it still lives on for another 10yrs until 2036 when it would cease to exist. At anytime during those 10yrs all 3 parties can all agree to extend it for another 16yrs past 2036.
As a result - USMCA will be in effect until 2036, in its present form and no one can change it unless all 3 parties agree to the changes.
If the lawsuits making there way through the US courts ‘go our way’ and the tariffs put in place because to fentanyl are all thrown out, then both Canada and Mexicl will be the only 2 countries in the world to have no or virtually no tariffs against them. This puts us in a huge advantage. A German or Japanese or South Korean or French company whisking to ‘bypass’ the 15% traffic against then has a choice to set up shop to manufacture their product in the US OR in Canada or Mexico and have that product be allowed tax free into the US….