With more than six months after Canada, Mexico and the United States agreed to a fresh deal to govern $1 trillion in the regional trade, the chances of the nations to confirm the pact this year was lessening.
According to Reuters news reports, the three nations struck the US-Mexico-Canada agreement (USMCA) on September 30, putting an end to one-year negotiations difficulties after US President Donald Trump demanded the trade pact be scrapped or renegotiated.
But the agreement has not ended trade friction in North America. If pact’ ratification was delayed much longer then it could become a hostage to the electoral politics.
A former Mexican deputy foreign minister for North America, Andres Rozental, said, “The USMCA is in trouble.”
Canada will hold a federal election in October this year. The Canadian parliament must ratify the pact and the officials said the timetable was very tight.
Trump has expressed frustration with House of Representatives failing to ink off on the USMCA. He also threatened to withdraw from the old treaty, the NAFTA (North American Free Trade Agreement), if the US Congress doesn’t hurry up.
If Trump dump NAFTA, the three nations would revert to trade rules in place before it came into effect in 1994.
Mexico and Canada were seeking US tariffs exemption over global metal imports which were placed last year. The metal tariffs was not a part of the USMCA and both Canada and Mexico were impatient to resolve the issue.
Mexico has reiterated its threats to the US targeting new American products by April’s end in retaliation if US tariffs are imposed.
US Democrats threatened to block USMCA unless Mexico passes a law to improve workers’ rights.