A leading international trade expert forecasts that the United States will push for tighter restrictions on Canada's trade agreements with China during the renegotiation of the United States-Mexico-Canada Agreement (USMCA). This involves strengthening Article 32.10, which mandates prior notice for trade discussions with non-market economies (like China).
The existing USMCA requires three months' notice before initiating trade talks with a non-market economy and compels the disclosure of relevant information. The US considers China's economy non-market due to state subsidies, simplifying the imposition of anti-dumping measures on Chinese goods. The US could demand even more stringent requirements in future negotiations.
The article highlights the broader geopolitical context: the US-China trade war and the efforts by both nations to secure allies. The US is simultaneously negotiating with other countries (Japan, South Korea, India) to counter China's trade practices. China has warned of retaliation against countries aligning with the US.
Canadian officials, such as Prime Minister Mark Carney, have stated their willingness to engage in USMCA renegotiations. However, a prominent trade lawyer cautions that Canada shouldn't accede to US demands restricting its trade relationships with third countries. He views any such stipulations as unacceptable.