The U.S., Canada and Mexico Begin Bumpy Negotiations to Renew North American Trade Pact

International Trade attorney Patrick Childress was interviewed for an Associated Press (AP) article about the official onset of United States-Mexico-Canada Agreement (USMCA) negotiations. The 2020 trade pact, which replaced the North American Free Trade Agreement (NAFTA), includes a provision requiring renewal every six years, making 2026 the first year for renegotiations. Mr. Childress, who served as the Office of the U.S. Trade Representative's (USTR) lead attorney during initial implementation of USMCA, observed that thus far, talks have largely taken place between the U.S. and Mexico, with Canada on the sidelines.

"The danger for Canada is this: that the U.S. government and the Mexican government reach agreement on changes to core provisions of the treaty and then show up in Ottawa and say: 'Here's what we've agreed to. You can take it or leave it,'" he commented.

Mr. Childress also talked to AP about the Trump Administration's push to require more products to be manufactured in the United States, especially in the automotive sector. Currently, auto parts must be 75 percent made in North America to quality for duty-free treatment. The U.S. wants to raise that threshold, in addition to introducing a mandate for half of all cars be made in the United States. Mr. Childress said neither of these measures would be easy – or quick – to establish.

"[Automakers] have been fine-tuning their supply chains for years to be able to hit that 75 percent mark," he highlighted.

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