President Donald Trump has expressed his desire to end the US-Mexico-Canada Agreement (USMCA), a trade deal he once hailed as the “fairest, most balanced, and beneficial trade agreement we have ever signed.” The USMCA, which replaced the North American Free Trade Agreement, facilitates roughly $2 trillion in annual trade among the three neighboring countries.
Complexities of Withdrawal
However, withdrawing from the deal is complicated. The earliest it could happen is six months from now, per the terms of the agreement. Moreover, it is unclear whether Trump would have the authority to do so without congressional approval. The Senate Finance Committee has stated that “The United States cannot withdraw from a congressionally approved trade agreement without the consent of Congress.”
Senior administration officials have signaled an appetite to continue trade talks on a bilateral basis to work out specific issues, such as reducing the trade deficit the United States runs with Mexico and Canada. Prolonged negotiations would inject a fresh dose of uncertainty for businesses and disrupt their long-term plans, according to Scott Lincicome, a vice president at the libertarian-leaning Cato Institute.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
