On Wednesday, July 1, 2026, Mexican President Claudia Sheinbaum Pardo clarified that the United States’ potential decision not to extend the United States-Mexico-Canada Agreement (USMCA or T-MEC) for another 16 years would not end the treaty. Instead, the agreement will continue to be valid until 2036, with the possibility of further extensions if all three countries agree.

Speaking during the morning press conference at the National Palace, just before the first virtual tripartite review meeting between US Trade Representative Jamieson Greer, Canadian Minister Dominic LeBlanc, and Mexico’s Secretary of Economy Marcelo Ebrard, Sheinbaum explained Article 34.7 of the T-MEC. This article governs the six-year review process and the treaty’s duration.

Sheinbaum emphasized that if the US does not send a formal letter on July 1 expressing its intention to extend the agreement for 16 more years, the treaty will remain in force for the next 10 years—until 2036—with annual reviews. Mexico and Canada have already notified their desire to extend the treaty, but the absence of a US confirmation does not mean the agreement will end or that there is a deadline for deciding on the extension.

Key points from Sheinbaum’s explanation include:
– The treaty remains valid for 10 years if the US does not confirm the extension today.
– Annual reviews will take place during this period.
– The three countries can agree to extend the treaty at any time within those 10 years.
– A US decision not to extend now does not mean withdrawal; ending the treaty would require congressional approval in all three countries.

Sheinbaum also highlighted that this Wednesday’s meeting is part of the treaty’s scheduled review process, not a renegotiation. The review will allow the countries to discuss specific trade issues, including Mexico’s aim to improve conditions regarding US tariffs on vehicles, steel, and aluminum under Section 232 of US law.

Regarding investment uncertainty, Sheinbaum assured that her administration has worked to maintain economic stability without compromising Mexico’s sovereignty or key principles. She reiterated that all current treaty provisions remain in effect.

Looking ahead, Sheinbaum mentioned that around July 20, a US government team might visit Mexico to continue discussions and define the framework for annual evaluations if the automatic extension does not materialize now.

Sheinbaum also noted that Mexico will keep promoting the Mexico Plan and strengthening ties with other regions, such as Europe, but stressed the importance of waiting for the US’s formal position and the outcomes of the trilateral meetings before pursuing alternative trade agreements.

Finally, she pointed out that the T-MEC benefits the US as well by lowering costs for consumers and reinforcing North American supply chains. “Maintaining the treaty and reducing tariffs helps the people of the United States by lowering prices,” she said.

Secretary Marcelo Ebrard is scheduled to speak at the morning press conference on Thursday, July 2, 2026, to provide further updates on the process.