The United States-Mexico-Canada Agreement (USMCA) introduced a notable innovation: a formal joint review. This review occurs six years after the agreement enters into force. As the first USMCA review mechanism process concludes, analysts are currently evaluating its overall success. Canada and Mexico agreed to extend the agreement for another 16 years, whereas the United States declined to do so, which triggered the annual review process under Article 34.7.
How the Review Was Designed
Unlike NAFTA, the USMCA requires all three governments to periodically assess the agreement. Article 34.7 was designed to balance two competing objectives. First, it provides a point of recurring political accountability, ensuring the agreement stays aligned with changing economic conditions. Second, it provides investment certainty by avoiding the disruption of a rigid “sunset clause” through a renewable 16-year term.
Lessons for Future Trade Governance
The first review was a procedural success based on congressional requirements, yet experts Maricarmen Barron Esper and Christopher Sands suggest the process could be more effective. For instance, the review process often became tied to broader bilateral disputes, such as migration and border security, rather than focusing solely on core governance functions. Furthermore, future reviews should identify modernization proposals—including digital trade, artificial intelligence, and critical minerals—much earlier in the cycle. Ultimately, the USMCA review mechanism works best as a disciplined forum that focuses on improving the agreement, rather than acting as a venue for unrelated diplomatic bargaining.
By keeping the mechanism focused on operational effectiveness, stakeholders can strengthen legal certainty for investors while simultaneously preserving the long-term political legitimacy of the agreement.
Barron Esper, M., & Sands, C. (2026, July 2). USMCA review reviewed: Lessons from the first use of USMCA’s review mechanism. Brookings Institution. https://www.brookings.edu/articles/usmca-review-reviewed-lessons-from-the-first-use-of-usmcas-review-mechanism/