Tuesday 10 December 2019

USMCA? CUSMA? Whatever you call it, it's finally done

It looks as if the long wait for ratification of the new trade deal that is to replace NAFTA is just about over.  A signing ceremony is to take place in Mexico City today, with US Trade Representative Robert Lighthizer and Canada's Deputy Prime Minister Chrystia Freeland expected to be in attendance.  Both the US and Canada still have to pass the deal through their legislatures, but that now looks like a formality.

Given that the countries cannot even agree on what to call the deal, the slow progress is perhaps not surprising.  For the Americans it's USMCA, but Canada prefers CUSMA.  However, the delay in proceeding with ratification was caused by much more significant issues.  The Democrats in the US House of Representatives were concerned that provisions for workers'rights and the environment might be difficult to enforce in Mexico and refused to bring the deal forward until their concerns were addressed.

If you can cast your mind back to the summer of 2018, when the main round of negotiations came to a head, Canada was largely sidelined as the US and Mexico put the final touches on a deal, which was then presented to Canada almost on a take-it-or-leave it basis.  Something similar has happened here again:  the final negotiations took place in Mexico City this past weekend with Canada largely a spectator.  It's a bit disconcerting to watch, but the apparent conclusion of this saga has to be a good thing, even if it does give Donald Trump an extra bragging point as election season starts to ramp up.


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