USMCA NORTH AMERICAN TRADE DEAL HELPS WITH CHINA (and EU) . . . SECTION 32

[Jabbar + 465]

Section 32 of the North American Trade Agreement states that if one of the members discusses an independent trade agreement with a non-market trading partner , like China, they must inform the other two.

It encourages the three North American countries to work together, negotiate together and limit China from shipping products to Mexico or Canada and onto U.S. thus circumventing any other trade deals or tariffs.  It is applied equally between all three,  but helps U.S. most. Others have no choice.

This helps U.S. negotiations with China and may be part of future agreements with other trading partners in Asia or the EU.

Section 32 helps with the upcoming trade negotiations with EU.  Trump could destroy Merkel's economy by putting tariff  on European cars and parts.  

1. Many European car mfg have plants in Mexico and manufacture or import parts there.  Once U.S. negotiates with EU , Mexico and Canada will have to comply.

2. Expect many of the USMCA auto mfg terms to be applied to EU like % mfg in US , etc.  Additionally, may convince (or force) EU to join U.S. to negotiate STRONG phase 2 agreement with China.  

U.S. Trade Representive Lighthizer is the best. 

Section 32 not talked about very much but become very important in the future. 

  

Edited December 11, 2019 by Jabbar