Mexican President Claudia Sheinbaum has said the United States and Canada were to hold a virtual meeting to review the United States-Mexico-Canada Agreement (USMCA) on July 1. The Mexican government seeks to secure a 16-year extension on the agreement or open a decade-long cycle of annual reviews ahead of any eventual termination, El Economista reported. 

Speaking at her regular morning press conference on June 30, Sheinbaum said Mexico had signed a letter proposing to extend the USMCA for a further 16 years, adding that Canada had submitted a similar letter.

Sheinbaum said the trade agreement contains several review mechanisms, one of which would allow the treaty's validity to be extended for another 16 years. She stressed that any substantive changes to its terms would require approval from the legislatures of all three countries.

"There could be several options. One of them could be, for example, extending it for another 16 years. If there were a major change, it would have to go through the congresses of the three countries, so we don't see a major change as very likely," Sheinbaum said.

She said that, absent substantial amendments to the agreement, a formal review process would be launched while technical negotiations between the three governments continued. A delegation from the US government is expected to travel to Mexico shortly to hold further discussions with the country's economy ministry, she added.

Sheinbaum reiterated that Mexico supports the continuation of the USMCA, arguing that all three signatory nations benefit economically from the arrangement.

"The treaty is beneficial to all three countries: Canada, Mexico, and, of course, the United States," she said.

As an example, Sheinbaum pointed to a roughly 30% rise in vehicle prices in the US, which she linked partly to tariffs currently imposed on the automotive, steel and aluminium sectors.

On relations with Canada, Sheinbaum said the two countries maintained constant communication, citing a recent visit to Mexico by Canadian Prime Minister Mark Carney accompanied by business executives.

"There has been a lot of progress. There have even been improvements in both trade and investment between Mexico and Canada," she said.

Turning to the United States, Sheinbaum acknowledged that President Donald Trump's administration continued to pursue a protectionist trade agenda centred on tariffs.

"We all know that President Trump's position is to impose tariffs on everyone. That's essentially what we've been experiencing since he took office," she said.

She added that talks with Washington had continued and were confined strictly to trade-related matters.

Sheinbaum said support from the corporate sector across the three countries was among the strongest arguments for maintaining the trade pact, citing deep integration of supply chains and manufacturing networks across North America.

"The biggest defenders of the treaty are the businessmen themselves who have investments in Mexico, Canada and the United States and who produce goods in production chains linked to the three countries," she said.

Sheinbaum urged the public to await the outcome of the July 1 meeting and said her government had taken all necessary measures to safeguard the trade agreement.

The Trump administration is leaning against a 16-year renewal of the USMCA, Reuters reported on June 30. This triggered a drop in Mexican equity markets as investors weighed trade uncertainty. 

Should the three signatory countries fail to agree on amendments to the pact, the deal will remain subject to annual review for the next decade before formally expiring on July 1, 2036. 

USMCA includes oil and gas through general trade and investment rules, but it does not create a special integrated North American energy market or override national control of resources, which is relatively tight in Mexico.