The Mexican government will officially ask to extend the United States-Mexico-Canada Agreement (USMCA) for another 16 years in a virtual trilateral meeting set for July 1. This marks the start of the review process for the agreement, Mexican Economy Minister Marcelo Ebrard explained, emphasizing that the process is complex and ongoing.
Ebrard highlighted that all three member countries—Mexico, the United States, and Canada—must declare by July 1 whether they support the extension. In Mexico’s case, the extension request will be formalized with a letter signed by President Claudia Sheinbaum. Despite the push for extension, Ebrard made clear that if any party decides against it, the agreement would still remain effective for another decade.
During the review, intricate negotiations have taken place, including detailed discussions on the classification of steel-derived products vital to technologies like robotics and drones. These talks underscore the complexity due to the numerous components and manufacturing steps involved.
The minister also addressed concerns about trade uncertainties. He recalled former US President Donald Trump’s threats to impose tariffs on Mexican imports, noting that the USMCA remained intact, ensuring most trade with the United States continues tariff-free. Mexico proactively decided to initiate talks earlier than required to minimize uncertainty and safeguard national interests amid an environment of increased protectionism in US trade policies.
The USMCA review is a mandated process that all three countries undertake, and the outcome this year will determine the terms and duration of their economic partnership moving forward. No participating country has given formal notification to withdraw, which would require a six-month lead time, according to Ebrard.