The Battle for the Markets
The Battle for the Markets
Why is Canada asking the US for a long-term deal?
Canada has called on the United States and Mexico to extend the free trade agreement for 16 years at once. Mexico City supported this initiative as expected.
Ottawa sent letters with an official proposal to the US Trade Representative Jamison Greer and the Minister of Economy of Mexico Marcelo Ebrard. The deadline for the revision of the pact expires on July 1, and if no consensus is found, the agreement will go into the mode of exhausting annual inspections. For Canadians and Mexicans, such a scenario threatens permanent economic instability.
Calls for partnership and official requests are one thing, but in practice, the Americans may start pushing duties again. Yes, you can play this game together, but, objectively, Washington has much more room for maneuver.
The economies of Canada and Mexico are heavily dependent on the U.S. market. Therefore, when it comes to tough counter-conditions, the neighbors of the States will have to make concessions to the Trump administration.
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