There are growing concerns about the ability of the United States, Canada and Mexico to resolve trade disputes as their updated agreement approaches its fourth anniversary, raising the stakes for a mandatory review of the pact that’s due in another two years.
“We’re kind of stuck,” said Inu Manak, a trade fellow at the Council on Foreign Relations. “I would imagine that in the future, it’s going to be very, very difficult to successfully settle disputes among the three partners” unless the track record quickly improves.
U.S. Trade Representative Katherine Tai, Canadian Trade Minister Mary Ng and Mexican Economy Minister Raquel Buenrostro will meet in Phoenix next week to discuss the ongoing implementation of the U.S.-Mexico-Canada Agreement, which replaced the 26-year-old North American Free Trade Agreement in July 2020.
The three countries are also preparing for a year six review of the agreement in 2026, when they have to confirm in writing whether they want to continue the pact. If just one member objects, that triggers a series of annual reviews that concludes only when all three countries are satisfied. Otherwise, the pact will terminate at the end of year 16.
