June 2026 · Updated June 1, 2026 · By Jet Worldwide
The much-anticipated CUSMA/USMCA joint review is now weeks away, and the central question across the trade community is straightforward: will it be resolved — and if so, how soon? The short answer is that very little will be settled on July 1. Here is what the agreement requires, where things stand, and what Canadian exporters and importers should plan for.
Key Takeaways
In This Article
Under Article 34.7, CUSMA is subject to a formal joint review six years after implementation — July 1, 2026. But this date is a trigger, not a deadline. It initiates a mandatory conversation among Canada, the United States, and Mexico to assess whether to extend, adjust, or wind down the agreement.
This is the first time the review mechanism has ever been used, so there is no established blueprint for how the process will be conducted.
The review process can lead to one of three outcomes:
1. Extension
A 16-year extension of the agreement, providing long-term stability for North American trade.
2. Annual Reviews
A transition into annual review cycles for up to 10 years, followed by expiration if no resolution is reached.
3. Withdrawal
A full withdrawal by any party, effectively ending the trilateral agreement.
A straightforward renewal of CUSMA looks highly unlikely. Early rounds of engagement have taken place largely between the United States and Mexico, while Canada's role has been limited.
The review process opens the door to re-litigating longstanding trade irritants among all three parties.
Ongoing tariff measures have reshaped the broader trade environment. This executive authority -rather than requiring congressional legislation - is used more freely. With IEEPA being abolished, key tools that remain include:
| Authority | Legislation | Basis for Restrictions |
|---|---|---|
| Section 122 | Trade Act of 1974 | Balance of payments and large trade deficits (currently challenged in court) |
| Section 301 | Trade Act of 1974 | Unfair foreign trade practices and IP violations |
| Section 232 | Trade Expansion Act of 1962 | National security threats from specific imports |
These tools allow trade restrictions to be imposed under specific economic or national security conditions — and their expanded use has added significant pressure to the broader trade environment heading into the CUSMA review.
These developments reflect a fundamental shift in U.S. trade strategy: trade is increasingly treated not as an economic matter but as a tool of foreign policy leverage. This more transactional approach carries directly into the CUSMA review process.
The review opens the door to re-litigating longstanding irritants rather than locking in the stability that businesses on both sides of the border depend on.
We expect the review process to extend beyond 2026. For Canadian exporters and importers, the practical takeaways are clear:
What is shaping up is a prolonged negotiation rather than a routine renewal. The three parties — Canada, the United States, and Mexico — will need to work through significant differences before any lasting resolution is reached.
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