{"id":84789,"date":"2024-06-30T10:34:17","date_gmt":"2024-06-30T15:34:17","guid":{"rendered":"https:\/\/imco.org.mx\/en\/?p=84789"},"modified":"2024-07-01T13:14:12","modified_gmt":"2024-07-01T18:14:12","slug":"imco-and-wilson-center-assess-usmca-four-years-down-the-road","status":"publish","type":"post","link":"https:\/\/imco.org.mx\/en\/imco-and-wilson-center-assess-usmca-four-years-down-the-road\/","title":{"rendered":"IMCO and Wilson Center assess USMCA four years down the road"},"content":{"rendered":"

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IMCO and Wilson Center assess USMCA four years down the road\u00a0<\/b><\/p>\n

The United States\u2013Mexico\u2013Canada Agreement (USMCA) celebrates its fourth anniversary on July 1. The USMCA modernized the 1994 North American Free Trade Agreement (NAFTA) and gave continuity to the regulatory framework of the trade relationship between Mexico, the United States and Canada.<\/span><\/p>\n

With four years elapsed, <\/span>the agreement is two years away from its first review <\/b>by the governments of Canada, Mexico and the United States, as established in the agreement\u2019s <\/span>sunset clause<\/span><\/i>. Currently, the USMCA is set to expire in July 2036. At the next review in July 2026, <\/span>the countries may decide to extend the agreement\u2019s current validity period by six years<\/b>, i.e. until 2042. If they decide not to extend, they will have to conduct annual reviews until the original term expires in 2036.<\/span><\/p>\n

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This context highlights the importance of ensuring that Mexico, the United States, and Canada comply with the commitments established in the USMCA. Doing so will help maintain the stability that the agreement’s regulatory framework provides to the trilateral trade relationship. This stability has allowed Mexico and Canada to increase their roles as suppliers of U.S. imports and to surpass the amount of U.S. imports from China.<\/span><\/p>\n

Trilateral issues: active cases of controversy<\/b><\/p>\n

A crucial element for a successful USMCA review in 2026 is resolving the ongoing State-to-State disputes under its rules. To date, <\/span>the dispute settlement mechanism has been activated seven times across various sectors: dairy, automotive, energy, agricultural biotechnology, and solar panel production<\/b>. In four cases, the panels concluded their investigations and submitted Final Reports. Of the remaining cases, one has an established panel, while two others \u2014related to Mexico’s energy policies\u2014 remain in the consultation stage.<\/span><\/p>\n

The active cases are as follows:<\/span><\/p>\n

1. Energy policy and measures in the electricity sector (two cases)<\/b><\/p>\n