The United States-Mexico-Canada Agreement (USMCA) will remain in force until 2036, even if the United States does not immediately approve a 16-year extension of the trade agreement, according to Mexican President Claudia Sheinbaum. The clarification provides reassurance to businesses and investors by confirming that the agreement will continue governing trade across North America while annual review mechanisms move forward.
 

Under Article 34.7 of the USMCA, the agreement entered its scheduled six-year review process on July 1, 2026. While Mexico and Canada formally expressed their intention to extend the agreement for another 16 years, the United States opted not to support the extension at this stage, triggering annual joint reviews rather than an automatic renewal. However, the treaty remains fully effective through its original expiration date in 2036.
 

Annual Reviews Will Guide the Future of the Agreement

 

The review process is designed to evaluate the performance of the agreement and identify areas where the three countries may seek updates or improvements. The absence of an immediate extension does not terminate the USMCA or alter current trade rules.
 

According to the Mexican government, the three partner countries may agree to extend the agreement at any point during the review period. If consensus is reached, the treaty can still be renewed for an additional 16-year term.
 

 

Trade Continues Without Immediate Changes

 

Mexican officials emphasized that businesses operating under the USMCA should not expect immediate changes to trade conditions. The agreement continues to regulate commerce between Mexico, the United States, and Canada, preserving preferential market access and the integrated supply chains that support key industries across North America.
 

For manufacturers and exporters, particularly those in the automotive, electronics, aerospace, and advanced manufacturing sectors, the continuity of the agreement provides important stability for investment planning and cross-border operations.
 

A Positive Signal for Investment in Monterrey

 

As Mexico’s leading destination for foreign direct investment and advanced manufacturing, the region stands to benefit from the continued certainty surrounding the USMCA.
 

The state’s strategic location, highly integrated supplier network, skilled workforce, and proximity to the U.S. market have made it one of the principal beneficiaries of North American economic integration. Maintaining the agreement supports ongoing investment decisions by international manufacturers that rely on regional supply chains and tariff-free trade.
 

 

Review Process May Strengthen Regional Competitiveness

 

During the review period, Mexico will seek improvements on issues affecting regional competitiveness, including tariffs imposed under Section 232 on steel, aluminum, and certain automotive products. Government officials indicated that the review presents an opportunity to strengthen North American trade relations while preserving the benefits of the agreement.
 

Continued dialogue between the three countries is expected over the coming months, with additional meetings planned to discuss the annual review framework and potential updates to the agreement.
 

Reinforcing Confidence in North American Manufacturing

 

The confirmation that the USMCA remains in force until 2036 provides long-term certainty for companies investing in Mexico and across North America. The agreement continues to support integrated manufacturing, regional supply chains, and cross-border trade that have become essential to industries such as automotive, electronics, medical devices, and advanced manufacturing.
 

For Monterrey, the continuity of the USMCA reinforces its position as a strategic manufacturing hub where companies can confidently invest, expand operations, and serve North American markets under a stable trade framework.
 

 

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