We must also ensure any updated USMCA agreement closes loopholes that allow non-USMCA countries to obtain significant benefits from the preferential tariff treatment provided under the agreement.
Ensure any updated USMCA agreement closes loopholes that allow non-USMCA countries to obtain preferential tariff benefits and level the playing field for American workers and manufacturers.
Occurrences
Evidence
USTR reported the July 1, 2026 joint review occurred, the United States did not renew USMCA in its current form, and negotiations with Mexico and Canada will continue while the agreement remains in force.
The House Ways and Means official news feed listed Chairman Jason Smith's July 1 statement titled: "Any Future Agreement Must Close Loopholes, Level the Playing Field for American Workers & Manufacturers."
USTR's roundup included Chairman Jason Smith backing the decision not to rubber stamp the status quo and citing Mexico and Canada compliance problems under USMCA.
USTR and Mexico said the second negotiating round advanced rules-of-origin and economic-security discussions and focused on ensuring USMCA benefits accrue primarily to the parties.
USTR said negotiators discussed automotive rules of origin, steel, aluminum, economic security, agriculture, a level playing field, and addressing third-country free-riding.
Article 34.7 provides that if any party does not confirm extension during the six-year review, the Commission meets yearly for the remainder of the term.
Assessments
The evidence shows Jason Smith publicly and materially pressed for USMCA review terms that would close third-country tariff-benefit loopholes and level the playing field for U.S. workers and manufacturers. However, the July 1, 2026 joint review did not produce an updated USMCA agreement; USTR said negotiations would continue while the existing agreement remains in force. Because the promised outcome is an updated agreement with those loopholes closed, and that final outcome has not yet occurred, the promise remains unresolved rather than delivered. Smith’s public pressure and support for renegotiation justify an effort badge.