New NAFTA (USMCA) deal in trouble due to elections, tariff blows



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New NAFTA (USMCA) deal in trouble due to elections, tariff blows

It had been more than six months since the US, Mexico and Canada had signed a new deal for administering over $1 trillion of regional trade, yet chances of transforming the pact more resilient had almost become a distant dream amid tariff abrasions on an additional US tariff on Canadian and Mexican steel import and upcoming elections on United States and Canada, which could potentially fornicate the fate of the regional trade pact.

On September 30th, three neighboring nations, Mexico, United States and Canada had dissolved the previously called NAFTA and formed a new pact named as USMCA, following a year of tentative negotiations after US President Donald Trump had threatened to scrap the deal multiple times, unless the nations agreed to renegotiate the terms.

Despite an agreement reached last year, in particular US administration had shown little respect to it and threatened multiple times to dislodge the pact, unless Canada and Mexico stopped pushing United States over steel tariff issues, amid an ongoing “America First” policy of US President Donald Trump.

As the ratification had delayed for long, the agreement appeared to become a political hostage ahead of a Canadian federal election in October and United States’ next presidential election in 2020. As an approval of the framework governing the fate of future investments over the region had been hanging as a political captive, businesses over the North American region remained uncertain, while expressing concerns over the future of USMCA agreement, a former Mexican deputy foreign minister for North America, Andres Rozental said, “The USMCA is in trouble”.