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The United States-Mexico-Canada Agreement, better known as USMCA, is the trade agreement that establishes the framework for trade and investment among the United States, Canada and Mexico. It replaced the North American Free Trade Agreement, or NAFTA, and took effect on July 1, 2020.

In Canada, the agreement is called CUSMA. In Mexico, it is known as T-MEC. All three names refer to the same agreement.

For companies in Buffalo Niagara with customers, suppliers or operations across the U.S.-Canada border, understanding how USMCA works – and what changes to it could mean – is important for navigating cross-border costs and planning with greater certainty.

What does USMCA do?

USMCA establishes the rules under which goods, services and investments move across North America. Among its principal provisions, the agreement:

• Preserves tariff-free or preferential access for many qualifying products traded among the three countries
• Establishes rules of origin that determine whether a product qualifies for preferential treatment
• Sets customs and certification requirements for importers, exporters and producers
• Includes provisions governing agriculture, automotive manufacturing, digital trade, intellectual property, labor and environmental standards
• Creates mechanisms for resolving certain trade disputes
• Includes provisions intended to help small and medium-sized businesses participate in North American trade

Why USMCA matters to Buffalo Niagara

The Buffalo Niagara region sits along one of the most active commercial borders in North America. Companies throughout the region rely on customers, suppliers, talent and transportation networks on both sides of the U.S.-Canada border.

For local employers, USMCA supports:

• Access to Canadian and Mexican markets
• Integrated manufacturing and agricultural supply chains
• Cross-border movement of components and finished products
• Greater predictability for investment, hiring and sourcing decisions
• The region’s role as a center for logistics, warehousing and international commerce

Changes to the agreement, or prolonged uncertainty about its future, could affect costs, contracts, sourcing strategies and capital investment throughout Western New York and Southern Ontario.

What is the 2026 joint review?

USMCA requires the three countries to review the agreement six years after it took effect. The first joint review was held on July 1, 2026, when the U.S. did not agree to extend the agreement in its current form. While the USMCA was not renewed for a new 16-year term at that time, the agreement remains in force while the countries continue negotiations.

The review is an opportunity for the United States, Canada and Mexico to evaluate how the agreement is working and propose changes. Current discussions include manufacturing, automotive rules, agriculture, labor, economic security, steel and aluminum, plus the role of non-North American inputs in regional supply chains.

Importantly, USMCA did not automatically expire in 2026. The agreement's current term runs through July 1, 2036. If all three countries confirm that they want to continue it, its term can be extended for another 16 years. If they do not agree to an extension, annual reviews can continue before the scheduled expiration date.

The BNP supports a stable, predictable and rules-based North American trading relationship. Our Government Affairs Team will continue monitoring the USMCA review and advocating for policies that protect regional employers, integrated supply chains and Buffalo Niagara’s cross-border economy.

Download your copy of the 2026 Advocacy Agenda to learn more about this year's advocacy priorities.