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China Language in USMCA Not Surprising

Dan Industry News Release, Trade

Language against trade talks with China in the U.S.-Mexico-Canada Agreement is not surprising, according to a Chinese editorial.

languageThe South China Morning Post, an English language newspaper based in China, says the policy is perhaps the worst feature of the USMCA for Beijing, as it may become a template for future trade talks Trump holds with allies such as Japan, India and the European Union.

Article 32.10 in the preliminary agreement gives the U.S. “virtual veto power” over any bilateral deal Canada or Mexico may wish to reach with “a non-market country,” being China. The editorial calls the policy a “last minute demand” by the U.S., adding that ” there was probably little Canada and Mexico could or would do to resist it.”

China is Canada’s second-largest trading partner and the fourth-largest trading partner for Mexico.

Source: National Association of Farm Broadcasting News Service.