The US, Canada and Mexico are staring down a 1 July deadline to decide the future of a long-standing North American free trade pact. All signs point to them blowing past that date without a clear resolution. This was reported by Qazaqyia.kz citing BBC News.

On Wednesday, trade representatives from all three countries will meet formally for the first time since a review of the USMCA pact began. Canada and Mexico have both said they want the deal renewed, while the US has yet to outline its position.

Most recently, President Donald Trump said he sees the deal "expiring immediately", arguing that the US would be better off without it.

The USMCA encompasses some 510 million people and underpins nearly $1.6tn in annual trade between the three countries. It has helped integrate key sectors such as North America's auto industry and supports millions of jobs across the region.

Canadian officials are anticipating that talks with the US will continue past 1 July. Mexico and the US have announced another round of formal bilateral talks for later in the month.

In a statement to the BBC, the office of Canada-US trade minister Dominic LeBlanc said Wednesday's meeting will be "an opportunity to build on the positive, constructive bilateral discussions he has had with both countries in recent weeks".

The current deal was negotiated during Trump's first term. It replaced the North American Free Trade Agreement, which had been in place since the 1990s.

The pact has broad support in the US, with a late 2025 Ipsos survey by the Chicago Council on Global Affairs suggesting 75% of Americans believe it has been beneficial to the economy.

Since the review began earlier this year, the US has been engaged in talks with Canada and Mexico separately. There has been a perception that Canada is lagging behind, as Mexico and the US have announced multiple rounds of formal talks, while Canada and the US have not.

Members of a Canada-US trade advisory committee assembled by Prime Minister Mark Carney, however, said the list of US demands for Canada is "much shorter" than Mexico's and that talks are actively taking place.

Some US demands include greater access for American producers to Canada's dairy market, the removal of Canadian taxes on major US streaming companies, and the reversal of provincial boycotts on US alcohol imposed in response to Trump's tariffs.

The US is also discussing tighter rules of origin for North American-made vehicles with Mexico, fuelling speculation that it could make similar demands of Canada given the region's highly integrated auto sector.

Canada has presented "a number of specific proposals" to address US irritants, LeBlanc and Canada's chief negotiator Janice Charette said earlier this month.

For Canada, a major sticking point is US tariffs on a number of key sectors, including steel, aluminium and automobiles. Carney insists Canada is not willing to sign a bad deal.

Business leaders have made it clear that their most desired outcome is lower tariffs and clarity on the future of US-Canada trade, even if it means negotiating past deadline, said Dennis Darby, a committee member and president of Canadian Manufacturers and Exporters.

The two countries were close to a deal last October, but progress was derailed after Ontario ran an anti-tariff advert on American networks that angered Trump, said US ambassador to Canada Pete Hoekstra.

As talks continue, the USMCA will remain in place for another 10 years until its set expiry date of 2036. Three options exist: all three could agree to renew the pact for another 16 years; if they fail to all agree, an annual review process would be in place until the pact expires.