Washington — The Computer & Communications Industry Association responded to the U.S. Trade Representative’s statement today that the United States, Mexico, and Canada did not agree to renew the U.S.-Mexico-Canada Agreement (USMCA) in its current form.
Importantly, today’s outcome does not terminate the agreement. The USMCA remains fully in force. Absent renewal, the three governments will conduct annual joint reviews, and the agreement continues on its original 16-year term, through July 1, 2036, unless the parties extend it or it is otherwise terminated.
CCIA supports renewal of the USMCA, which has been a foundation for North American digital trade, but recognizes that significant unresolved issues make full renewal premature at this time. The association looks forward to continued negotiations that can resolve these issues and justify the agreement’s full, long-term renewal.
To lay a viable path for full renewal CCIA urges U.S. negotiators to prioritize removing measures that discriminate against American digital providers, including Canada’s Online Streaming Act (Bill C-11) and associated CRTC content-funding mandates, Canada’s Online News Act (Bill C-18) link tax, and Mexico’s financial-sector cloud regulations that impose de facto data-localization requirements on U.S. cloud providers.
CCIA and its members remain committed to working with the Administration, Congress, and the governments of Canada and Mexico to secure a modernized USMCA that preserves the digital trade standards essential to North American competitiveness.
The following can be attributed to CCIA Vice President of Digital Trade, Jonathan McHale:
“The USMCA has been a cornerstone of North American digital trade, and U.S. firms overwhelmingly want to see it renewed. But renewal must be predicated on first addressing the issues that have prevented the agreement from fulfilling its promise, particularly in the digital arena. Negotiators should address discriminatory measures undermining reciprocal market access, like Canada’s Online Streaming Act, its content-funding mandates, and the Online News Act’s link tax. Fix those, and full, long-term renewal becomes not just possible but well-earned. This outcome isn’t a cliff; the trade agreement remains fully in force, and businesses keep the certainty they rely on while negotiations continue. That gives all three governments the runway to get this right.
