David Lawder — Trade pact clause seen deterring China trade deal with Canada, Mexico

China’s hopes of negotiating a free trade pact with Canada or Mexico were dealt a sharp setback by a provision deep in the new U.S.-Mexico-Canada trade agreement that aims to forbid such deals with “non-market” countries, trade experts said on Tuesday...

Derek Scissors, a China scholar at the American Enterprise Institute in Washington, said the provision gave the Trump administration an effective veto over any China trade deal by Canada or Mexico.

If repeated in other U.S. negotiations with the European Union and Japan, it could help isolate Beijing in the global trading system...

The leverage of the US is admission to the US market, and global financial order that the US runs as a near-monopoly.

On the other hand, the Chinese market is the world's largest and is developing most quickly, which is where the real growth is happening instead of fictitious profits.

The US may end up isolating itself in the end.

Reuters
Trade pact clause seen deterring China trade deal with Canada, Mexico

David Lawder

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