Washington/Mexico City: The United States-Mexico-Canada Agreement (USMCA) faces in 2026 its first formal review since it entered into force in 2020, in a politically complex context marked by the FIFA World Cup to be held in the three countries during the summer. The review clause obliges the partners to jointly evaluate the agreement and decide whether to maintain, modify, or terminate it.
Negotiations formally began in March and are taking place in a tense atmosphere. The United States, under the Trump administration, has demanded greater regional content in automobile manufacturing, stricter restrictions on Chinese imports through Mexico, and changes in dispute resolution rules. Mexico, for its part, insists on protecting its automotive industry and access of its agricultural products to the US market.
The World Cup Factor
The holding of the World Cup in June and July 2026 adds an unprecedented diplomatic dimension. The three countries must cooperate closely on logistics, security, and fan mobility, creating political pressure to maintain functional relations even while negotiating the trade agreement hard. Analysts note the tournament is at once an incentive for understanding and an opportunity for political prominence.
Consequences for the Region
The outcome of the review will have direct implications for economies like Costa Rica, El Salvador, and Honduras, which have integrated into manufacturing value chains linked to USMCA. A breakdown of the agreement or drastic changes could disrupt trade flows that sustain thousands of jobs in Central America. Latin American private sector experts follow the negotiations closely, trusting that economic pragmatism will prevail over protectionist rhetoric.
