Highlights
- The Office of the U.S. Trade Representative (USTR) recently announced the process for public consultation on the United States-Mexico-Canada Agreement (USMCA). Comments received will assist USTR in developing its report to Congress on recommendations for changes to the USMCA and could form the basis of key government negotiating positions. The deadline to submit comments and request to appear in the public hearing (scheduled for Nov. 17, 2025) is Nov. 3, 2025.
- The Mexican Ministry of Economy also announced a public consultation process in advance of the Joint Review. Companies, associations, academia and the general public have until Nov. 16, 2025, to submit comments. The ministry is looking to receive cases and experiences, identify risks and opportunities, and integrate a report with proposals that support Mexico's position during the review.
- Through Global Affairs Canada, the Canadian government will receive written submissions until Nov. 3, 2025. Canada's second public consultation process is seeking positive experiences as well as cases for improvement that help shape the country's preparation of the 2026 Joint Review.
- Holland & Knight's Tariff Task Force can assist interested stakeholders with submitting comments to USTR and/or participating in the public hearing, as appropriate.
The Office of the U.S. Trade Representative (USTR), on Sept. 16, 2025, announced the process for public consultation on the United States-Mexico-Canada Agreement (USMCA). Comments received will assist USTR in developing its report to Congress on recommendations for changes to the USMCA and could form the basis of key federal government negotiating positions. The deadline to submit comments and request to appear in the public hearing (scheduled for Nov. 17, 2025) is Nov. 3, 2025.
The Mexican Ministry of Economy announced on Sept. 17, 2025, a public consultation process in advance of a Joint Review of the operation planned for 2026. Companies, associations, academia and the general public have until Nov. 16, 2025, to submit comments. The ministry is looking to receive cases and experiences, identify risks and opportunities, and integrate a report with proposals that support Mexico's position during the review.
Additionally, through Global Affairs Canada, the Canadian government will receive written submissions until Nov. 3, 2025. Canada's second public consultation process is seeking positive experiences as well as cases for improvement that help shape the country's preparation of the 2026 Joint Review.
Background
The USMCA is a free trade agreement between the U.S., Canada and Mexico that entered into force on July 1, 2020, under the first Trump Administration. The USMCA provides for duty-free treatment of goods that qualify based on treaty-specific rules of origin.
The USMCA mandates that the signatory countries engage in the Joint Review of the operation of the agreement on July 1, 2026. For the U.S., implementing legislation (the USMCA Implementation Act) requires USTR to provide an opportunity for public comments on the operation of the treaty, as well as any potential changes.
Public Comments
Each of the signatory countries has announced its own public comment period.
U.S.
The Federal Register Notice announcing the public comments provides the following 2025 deadlines:
- Nov. 3: Public comments and requests to appear at a public hearing are due.
- Nov. 17-18: Public hearing to be held.
- Nov. 24-25: Post-hearing comments are due.
Public comments may address:
- any aspect of the operation or implementation of the USMCA
- any issues of compliance with the USMCA
- 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
- factors affecting the investment climate in North America and 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
- strategies for strengthening North American economic security and competitiveness, including collaborative work under the Competitiveness Committee and cooperation on issues related to nonmarket policies and practices of other countries
Mexico
The Federal Gazette (DOF) notice announcing the public comments provides for the following details:
- Deadline: Nov. 16 (60 days from the Sept. 17 publication date) on the official website
- Electronic submissions: accepted through tmec@economia.gob.mx (as well as the official website)
- Printed submissions: should be delivered to the Mexican Ministry of Economy at Calle Pachuca 189, Colonia Condesa, CP 06140, Territorial Cuauhtémoc, Ciudad de México, México, and addressed to Dirección General comisionada para América del Norte en la Unidad de Negociaciones Comerciales Internacionales de la Subsecretaría de Comercio Exterior
Public comments may address the following topics:
- general impact of the USMCA on Mexico's productive sectors
- challenges and opportunities arising from the implementation of the treaty
- specific experiences in trade in goods and services
- aspects related to rules of origin and customs procedures
- labor, environmental, and small and medium-sized enterprise issues
- intellectual property, digital trade and investment
- any other recommendation that contributes to strengthening Mexico's position in the joint review of the USMCA
Canada
The Canada Gazette notice announced the following ways to participate in the second public consultation:
- Deadline: Sept. 20 to Nov. 3, 2025
- Electronic submissions: send to CUSMA-Consultations-ACEUM@international.gc.ca
- Physical submissions: send to CUSMA Consultations, Global Affairs Canada, Trade Negotiations – North America, John G. Diefenbaker Building, 111 Sussex Drive, Ottawa, Ontario K1N 1J1
View the report on the first round of consultations.
Public comments may include:
- views, experiences, reflections and priorities with respect to the operation of CUSMA
- comments submitted by CUSMA Chapters 1-34
- comments regarding Section 232 Tariffs on autos and auto parts
- comments regarding Section 232 Tariffs on future measures, energy, wine, natural water resources, and guidelines for research and development expenditures
Submissions should include the following information:
- the contributor's name and address and, if applicable, the name of the contributor's organization, institution or business
- the specific issue being addressed
- where possible, precise information on the rationale for the positions taken, including any significant impact it may have on Canada's domestic or international interests
During the Joint Review, the signatory countries may recommend revisions to the USMCA. Because each party to the agreement must confirm in writing whether it wishes to extend the USMCA beyond an initial 16-year period (July 1, 2036), the Joint Review will likely be used as an opportunity for renegotiation. If any of the signatory countries fails to make this confirmation, these reviews will continue annually until the end of the 16-year period.
What's at Stake?
The USMCA sets the ground rules for the North American economic system. The treaty impacts all major sectors of the economy, including motor vehicles, aerospace, electronics and appliances, agriculture, e-commerce, finance and critical minerals.
Since the first free trade agreement between the U.S., Mexico and Canada, the North American Free Trade Agreement (NAFTA) in 1994, interdependent supply chains have developed across the signatory countries. The three parties have benefited from the preferential market access provided by the treaty. In 2024, according to Global Affairs Canada, the total value of the trilateral commercial relationship totaled $2.01 trillion, representing an increase of 4 percent from the previous year.
In the case of the U.S. and Mexico, per the U.S. Census Bureau, 2024 imports of goods to the U.S. from Mexico totaled $505.5 billion, and exports of goods from the U.S. to Mexico totaled $334 billion. Also in 2024, imports of goods to the U.S. from Canada totaled $411.9 billion, and exports of goods from the U.S. to Canada totaled $349.9 billion.
The initial USMCA negotiation focused on increasing North American production through stricter rules of origin, strengthening labor rights, increasing intellectual property protection and creating new dispute settlement mechanisms. Though this round of negotiations is likely to take up some of these issues again, expect the review process to be broad in scope, providing an opportunity for stakeholders to voice their concerns and assert new ideas for improving the structure and operation of the treaty.
U.S. Perspective on Negotiations
Prior to the Joint Review, the Canadian and Mexican governments have been meeting with the Trump Administration to address additional tariffs the U.S. has imposed on imports under various executive authorities, including Section 232 of the Trade Expansion Act of 1962 (Section 232) and the International Emergency Economic Powers Act (IEEPA). Any bilateral agreements reached during these meetings will likely to be folded into the Joint Review.
The Trump Administration is expected to push for increased U.S. content in USMCA products and limits on inputs from certain countries (China in particular). Mexico has already announced its intentions to raise tariffs on imports from China as part of its 2026 budget proposal. Also, given the justification of the additional tariffs on Canada and Mexico under Section 232 and the IEEPA, the Trump Administration will likely leverage the review to address issues such as immigration, drug trafficking and border security.
Under the Joint Review, the comment period and public hearing represent a unique opportunity for private stakeholders to impact the governance of North American trade.
Mexico Perspective on Negotiations
The priority for Mexico remains to reduce the current tariffs on the auto and auto parts industry, as well as the steel, aluminum and copper industries (Section 232), in addition to preventing new tariffs to other national industries, such as the pharmaceutical sector and aerospace industry. During the most recent official visit of U.S. Department of State Secretary Marco Rubio, the expectation of the Mexican authorities was to achieve an agreement on current trade issues or irritants. However, the conversation inclined toward security and migration issues.
The ideological differences between the countries showcase a complex scenario amid the Joint Review and consultation process beforehand. For that reason, Mexican authorities are looking to identify and quantify the economic impact of T-MEC (Mexico's term for USMCA) on the region, not only on absolute terms, but considering ways in which Mexico contributes to the American economy, its trade balance and its global agenda (for example, its vision on China). Moving the conversation toward positive outcomes appears to be the best way forward for Mexico.
The private sector could contribute considerably to this process by 1) highlighting the importance of the treaty, 2) sharing specific examples, cases and numbers that exemplify impact to the American and Canadian economies, and 3) building bridges between the three nations and identifying points of common interest and success.
Canada Perspective on Negotiations
Following the imposition of U.S. tariffs on Canadian goods, Canada has been engaging in ongoing trade negotiations with the U.S. These negotiations have led to Canada's elimination of the digital services tax and the strengthening of national defense and security measures, as well as discussions on the imposition of softwood lumber quotas. Prime Minister Mark Carney has indicated that the remaining issues would move to the Joint Review. Prime Minister Carney remarked that while he considers Canada to currently have the best trade deal with the U.S. of any country due to USMCA-compliant goods being exempt from U.S. tariffs, it could be better.
In advance of CUSMA (Canada's term for USMCA) negotiations on Sept. 19, 2025, Mexico and Canada launched a "Comprehensive Strategic Partnership" aimed at deepening ties between the two countries. The partnership will be guided by the "Canada-Mexico Action Plan," which outlines key areas of collaboration. These areas include trade and investment facilitation and port connectivity, as well as agriculture, energy, natural resources, health, security, emergency preparedness and climate action.
To support the new partnership, Prime Minister Carney announced $9.9 million in new funding to cover United Nations-led projects aimed at supporting the integration of migrants and displaced people in Mexico and strengthening Mexico's efforts to combat fentanyl trafficking.
The Process and What to Expect
USTR will use stakeholder input from the comment period and public hearing to inform a report to Congress (due Jan. 1, 2026), with recommendations for U.S. positions in the USMCA review. The USMCA Joint Review must commence no later than July 1, 2026. During the review, the signatory countries will propose and negotiate changes to the agreement for the purpose of renewing it for another 16-year term. Though the expectation is that the USMCA will be renewed, the negotiations could be contentious.
Three factors could impact the USMCA review process:
- This is the first trade agreement review process in which the three signatory countries have participated. The periodic review provisions in the USMCA are a novel instrument in trade agreements, so the negotiators will be charting new territory in determining whether, and how, to extend this trilateral trade agreement.
- President Donald Trump's authority to impose tariffs under the IEEPA is being challenged before the U.S. Supreme Court. Some exports to the U.S. from Canada and Mexico are subject to IEEPA tariffs, imposed based on the Trump Administration's determination that the countries contribute to the proliferation of fentanyl trafficking and illegal immigration into the U.S.
- Ongoing bilateral negotiations between the parties are expected to be folded into any final agreement to renew USMCA. However, details regarding those negotiations, or agreements reached therein, have not been released.
Holland & Knight's Tariff Task Force is prepared to assist interested stakeholders with submitting comments to USTR and/or participating in the public hearing, as appropriate. For more information or questions, please contact the authors.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
