On September 16, the Office of the United States Trade Representative (USTR) posted for public inspection a Federal Register notice (FRN) requesting public comments and providing notice of a public hearing as part of the six-year Joint Review of the United States-Mexico-Canada Agreement (USMCA). This formally launches the U.S. government's internal consultation process to inform its position on the future of the USMCA.
In the FRN, USTR is requesting comments by November 1 related to: (1) any aspect of the operation or implementation of the USMCA; (2) any issues of compliance with the Agreement; (3) recommendations for specific actions that USTR should propose ahead of the Joint Review to promote balanced trade, new market access, and alignment on economic security with Mexico and Canada; (4) factors affecting the investment climate in North America and in the territories of each Party, as well as the effectiveness of the USMCA in promoting investment that strengthens U.S. competitiveness, productivity, and technological leadership; and (5) strategies for strengthening North American economic security and competitiveness, including collaborative work under the Competitiveness Committee, and cooperation on issues related to non-market policies and practices of other countries.1
USTR also announced that a public hearing on these topics will be held on November 17, continuing on November 18 if needed. Persons wishing to appear at the hearing must provide written notification and a summary of their proposed testimony to USTR by November 1. USTR will also accept post-hearing rebuttal comments within seven calendar days after the last day of the public hearing.
Under the terms of the USMCA, the Agreement is set to terminate on July 1, 2036, unless each Party confirms its wish that it continues for an additional 16 years. As part of a six-year Joint Review, each country must indicate in writing if it wishes to extend to term of the USMCA by July 1, 2026. Any decision by a Party not to extend the term of the Agreement kicks off an annual review process until either all Parties agree to extend the Agreement or it expires on July 1, 2036.
The United States could use the USMCA Joint Review process to seek alterations to the USMCA, or other concessions from Mexico and Canada, in exchange for an affirmative declaration of its support for extending the term of the Agreement. As such, this comment period provides a meaningful opportunity to identify areas where the USMCA is succeeding and areas where improvements are warranted.
Footnote
1 The USMCA Competitiveness Committee was established under Article 26.1 of the USMCA to develop and implement cooperative activities in support of a strong economic environment that incentivizes production in North America, among other purposes. To date, the Competitiveness Committee has focused on expanding trilateral cooperation on North American workforce development issues and maintaining North American trade flows during emergency situations.
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