The media and Canadian government discussions around the U.S-Canada trade and economic relationship, specifically as they pertain to the USMCA (CUSMA) continue to be fascinating.
As we noted over a year ago, the expressed perception from the Canadian side was remarkably disconnected from the most likely scenario.
The level of entrenched disbelief that the U.S. could completely separate from a trilateral trade deal in favor of a bilateral replacement has been remarkable to watch.
However, for the first time today Canadian media began admitting to themselves the USMCA can technically be terminated within six months; albeit buried at the end of the article.
GLOBAL NEWS – […] “I’m not in a position to guarantee anything. These decisions are made at the White House. They are made by the president,” Hoekstra said.
His comments come just days after the Trump administration declined to extend the trilateral pact with Canada and Mexico for a new 16-year term, citing what the U.S. calls “shortcomings” and “trade deficits.” Mexico and Canada both publicly pushed for a renewal.
U.S. President Donald Trump suggested last month that the U.S. is “better without” CUSMA, and that he’d even prefer to see it “terminated.”
When asked by Global News, Hoekstra would not say if the administration is considering ripping up the deal, which can be done by any party with six months’ formal notice.
“All options are on the table,” Hoekstra said. “[Termination] clearly is allowed for within the agreement.” (read more)
Canada has painted themselves into a corner on the issue of Chinese manufactured automobiles. This is an issue that is not going away.
