Troubled Landmark Canada Mexico U.S. Trade Deal

Troubled Landmark Canada Mexico U.S. Trade Deal

Troubled landmark Canada Mexico U.S. trade deal might not come to fruition.

The major stumbling blocks are American politics.

Both Republicans and Democrats are threatening to sink the deal.

And without approval from Congress the deal won’t happen.

Also both Mexico and Canada are standing pat on key issues.

The new deal is called US-Mexico-Canada Agreement (USMCA).

Prior to that it was called NAFTA – North American Free Trade Agreement.

It was renamed at the insistence of President Donald Trump.

And the Democrats that now control the House say they want changes.

They want to see stronger protection against pollution and climate change.

They also want assurances the deal can be enforced.

Troubled Landmark Canada Mexico U.S. Trade Deal

The Republicans have other issues.

A group of 40 Republicans are protesting new protection for Lesbian, Gay, Bisexual and Transgendered workers.

Canada insisted that this protection be included in the new deal.

And Prime Minister Trudeau aware of the Republicans’ attitude is standing firm.

Trump has always made it difficult for Canada to get a deal.

Even to the point of sidelining Canada.

Also Trump wanted a big opulent signing ceremony for the new deal.

The reason?

He touted it as a major achievement of rewriting unfair trade deals for the U.S. economy.

Troubled Landmark Canada Mexico U.S. Trade Deal

But both Mexico and Canada are refusing.

Why?

Prior to the USMCA deal Trump had placed onerous tariffs on goods entering the U.S. from both countries.

And so far he has refused to rescind them.

If Congress blocks the deal Trump will be pissed off.

For starters his bragging about his achievement of a great new trade deal is not true.

And this will hurt his ego as he made it a campaign promise to get a new NAFTA deal.

Also he would only have three options left.

Leave the old NAFTA deal in place.

Or pull out of the old NAFTA deal, meaning there would be no trade deal between the three countries.

Or he could try to seek a new deal.

Here is a full report


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