The United States-Mexico-Canada Agreement (USMCA) replaces the North America Free Trade Accord, which had created the largest free trade region in the world when it came into effect in 1994. MLI Munk Senior Fellow Laura Dawson was on TVO’s The Agenda to discuss what the new deal means to Canada.
Of particular concern has been the new deal’s inclusion of a clause that specifies if one country enters into free trade with a “non-market economy,” the other parties are free to quit the deal and form their own bilateral agreement.
Yet, as noted by Dawson, “if Canada is going to do a deal with China, it has to be with the US.” As she goes on to say, “the NAFTA community brings both the marketing power and the negotiating leverage.”
