What Will Annual Reviews Mean for the USMCA?

Turenna Ramírez, who leads Holland & Knight's international trade practice in Mexico, was featured in a Q&A with the Inter-American Dialogue's Latin America Advisor about the Trump Administration's decision not to extend the United States-Mexico-Canada Agreement (USMCA) for another 16 years, setting the trade agreement up for annual reviews through 2036. Ms. Ramírez explained that since USMCA's implementation in 2020, trilateral trade has grown more than 30 percent to $1.9 trillion, and although annual reviews offer an opportunity to address unfair or non-compliant conditions, prolonged negotiations will increase trade and business uncertainty, which in turn complicates the business environment, job creation prospects, foreign investment decisions and long-term strategic planning. She noted that unresolved issues such as rules of origin, labor standards, tariffs on steel, aluminum, copper and automobiles, and China's activities in the region must be resolved before the pact can be extended.

"A suitable understanding sooner rather than later is needed to prevent an economic crisis," she said.

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