USMCA Renegotiation Is Coming

By Daniel Domsky

On February 12, 2026, the United States Senate Committee on Finance held a hearing examining the future of the United States–Mexico–Canada Agreement (USMCA) and its implications for the U.S. While conversations centered around the issues around the scheduled July review, Democrats, Republicans, and other non-partisan speakers agreed that the USMCA is strategically vital to the economic stability of the U.S.

There is consensus among Senators and speakers that the USMCA should be strengthened. Speakers emphasized that Mexico and Canada are the United States’ most important trading partners and that USMCA is one of the most consequential trade agreements globally. In 2024, trade among the United States, Mexico, and Canada totaled an estimated $1.93 trillion, with the USMCA supporting 16.3 million jobs across the three economies.

Additionally, senators emphasised that weak enforcement undermines the agreement’s credibility. New legislation should focus on mechanisms to enforce agreements and provisions. Testifying individuals noted the dairy industry in Canada, labor requirements in Mexico, and increased enforcement of environmental provisions. U.S. dairy producers argue that Canada has not fully complied with its tariff-rate quota commitments, thereby limiting promised access. Labor groups argued that funding, court capacity, and wage provisions in Mexico, in theory, deliver higher standards but fail to meet them in practice.

Finally, senators agreed that the USMCA is a core tool for economic security, helping the U.S. reduce reliance on unreliable partners. They emphasized that strengthening North American supply chains will allow the region to better compete with China. Senators emphasized that reducing exposure to supply chains in strategic sectors such as manufacturing, critical minerals, and technology is paramount. Henceforth, strengthening rules of origin and embedding stronger economic security provisions are essential to ensure the USMCA remains successful. In addition to this consensus, testifying individuals cautioned that extending the review process beyond 2026 would entail high costs to business certainty and future investment in the region.

Committee Chairman Mike Crapo cautioned against “letting the perfect be the enemy of the good.” There is consensus that keeping the agreement is strategically vital. At the same time, there is an urgency to address enforcement gaps and restore business certainty. As the six-year review of the USMCA approaches, the focus should shift from whether the agreement survives 2026 to how it should evolve.