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Aug. 4, 2026
By Virginia Houston, Sr.Director, Government Affairs, American Farm Bureau Federatipn Key Takeaways Canada and Mexico are two of the largest markets for U.S. agriculture, making USMCA critical for farmers and ranchers. Needed improvements include ensuring Canada delivers the dairy market access negotiated in the original USMCA and providing for a rapid response mechanism when additional issues arise. The stability provided by guaranteed cross-border market access is vitally important at a time when American agriculture faces strong headwinds. Under Review: USMCA In 2020, the U.S.-Mexico-Canada Agreement (USMCA) entered into force, replacing the North American Free Trade Agreement, or NAFTA. In President Trump's first term in office, he prioritized improving trade relationships for the United States. As part of his overall trade agenda, he directed former United States Trade Representative (USTR) Robert Lighthizer to work with Mexico and Canada to bring NAFTA into the 21st century. In addition to including important provisions maintaining guaranteed duty-free market access for agricultural products, improved sanitary -and phytosanitary (SPS) clauses, and enhanced dispute settlement mechanisms, the final agreement included something never seen in a U.S. free trade agreement. Article 34.7 of the USMCA - the "Review and Term Extension" clause - includes language stipulating that unless agreed to continue by all three countries, the USMCA will terminate 16 years after entry into force - July 1, 2036. Article 34.7 already includes language directing the three countries to come together to review the agreement and confirm in writing if they wish to extend the agreement for a full 16-year term. The Importance of July 1, 2026 After two rounds of bilateral negotiations with Mexico, and a trilateral virtual discussion with all three countries, on July 1, Ambassador Jamieson Greer from USTR issued a statement concerning the renewal status of the USMCA. While a renewal was not agreed to, for farmers, ranchers and agribusinesses dependent on these trade relationships, it's important to acknowledge that the USMCA will continue while the agreement falls into an annual review process. Read More. Tweet |
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