{"id":358747,"date":"2026-06-30T16:22:15","date_gmt":"2026-06-30T10:52:15","guid":{"rendered":"https:\/\/ebiztoday.news\/?p=358747"},"modified":"2026-06-30T16:22:15","modified_gmt":"2026-06-30T10:52:15","slug":"what-happens-to-cusma-on-july-1-the-paths-ahead-as-review-set-to-start-national","status":"publish","type":"post","link":"https:\/\/ebiztoday.news\/index.php\/2026\/06\/30\/what-happens-to-cusma-on-july-1-the-paths-ahead-as-review-set-to-start-national\/","title":{"rendered":"What happens to CUSMA on July 1? The paths ahead as review set to start – National"},"content":{"rendered":"

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The longer term of the Canada-U.S.-Mexico Agreement on free trade is ready to be discussed between all three countries Wednesday when a compulsory joint review can be held.<\/p>\n

July 1 is the date set out in CUSMA for the countries to either formally extend the agreement one other 16 years or proceed under annual reviews for as much as a decade.<\/p>\n

A spokesperson for Canada-U.S. Trade Minister Dominic LeBlanc told Global News the minister \u201clooks forward to meeting together with his U.S. and Mexican counterparts on July 1.\u201d<\/p>\n

\u201cThis can be a possibility to construct on the positive, constructive bilateral discussions he has had with each countries in recent weeks,\u201d spokesperson Jean-S\u00e9bastien Comeau said in an emailed statement.<\/p>\n

\u201cHe’s looking forward to continuing the work of supporting Canadian staff, farmers and businesses, on July 1 and beyond.\u201d<\/p>\n

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Mexico\u2019s Secretary of Economy Marcelo Ebrard confirmed earlier this month that the meeting can be virtual.<\/p>\n

The meeting comes as U.S. President Donald Trump and his administration have given mixed signals about whether the U.S. will renew the agreement, renegotiate it through prolonged talks, or terminate it entirely.<\/p>\n

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That has created mounting anxiety for integrated sectors just like the auto and manufacturing industries that depend on CUSMA\u2019s tariff-free trade provisions, with implications for investment and the North American economy as a complete, based on experts.<\/p>\n

\u201cReally we want more stability. We want more certainty in this case,\u201d said Michael Devereux, a professor on the Vancouver School of Economics on the University of British Columbia.<\/p>\n

Here\u2019s what to find out about Wednesday\u2019s review and the potential paths ahead.<\/p>\n

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\n\t\t\t\tWhat does CUSMA say about July 1?\t\t\t<\/h2>\n<\/p><\/div>\n

CUSMA got here into force in all three countries on July 1, 2020, for a period of 16 years.<\/p>\n

Article 34.7 of the agreement<\/a> says a \u201cjoint review\u201d can be held on the sixth anniversary of that enforcement date, during which representatives from all three countries will consider \u201cthe operation of this agreement, review any recommendations for motion submitted by a celebration, and judge on any appropriate actions.\u201d<\/p>\n

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As a part of that review, each country will confirm in writing whether it wishes to increase CUSMA for an additional 16 years. Each Canada and Mexico have submitted letters advocating for an extension, which might take the pact to 2042.<\/p>\n

If all three countries conform to a full 16-year extension, a brand new joint review will happen after one other six years \u2014 in 2032.<\/p>\n

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Otherwise, if the U.S. doesn’t confirm it wants a full extension, then a joint review can be held yearly for the remaining 10 years of the unique term, with the pact remaining in place as written.<\/p>\n

At any time during those 10 years, the pact may be prolonged for a brand new 16-year term if all three countries conform to achieve this, again with a compulsory review in six years.<\/p>\n

If there isn\u2019t a consensus to conform to a full extension, then the trade pact will expire in 2036, at the top of the unique 16-year term.<\/p>\n

Any country can even decide to withdraw from CUSMA entirely with six months\u2019 notice. If that happens, the deal would remain in place for the remaining parties unless they, too, decide to withdraw.<\/p>\n

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U.S. Trade Representative Jamieson Greer has said there are pillars of the continental trade pact that work well, but that some issues around agricultural import controls \u2014 referring to Canada\u2019s supply management system \u2014 and rules of origin.<\/p>\n

Those rules check with sourcing for materials which are then traded freely across North American borders. Concerns have been raised about countries like China exploiting loopholes to get their products into the market tariff-free.<\/p>\n

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