How Congress Can Take a Step Toward Trade Stability
After protracted smashmouth negotiations, the United States, Canada, and Mexico agreed to replace the North American Free Trade Agreement (“NAFTA”) with the new United States Mexico Canada Agreement (“USMCA”) on November 30, 2018. The new USMCA is largely NAFTA with certain positive elements drawn from the Trans-Pacific Partnership (“TPP”). Unfortunately, certain new protectionist provisions unnecessarily take the USMCA in the wrong direction.
Now, a new trade bill called the “Reciprocal Trade Act” could make trade turmoil much worse.