Brookings: 5 Things to Known About the New NAFTA

In a Brookings blog post, Geoffrey Gertz picks out five salient facts about the United States-Mexico-Canada Agreement, or USMCA. The trade deal replaces the North America Free Trade Agreement, and while it will be officially signed by the three heads of state on December 1, it will only become law after each country’s legislative branch grants approval. Despite US President Donald Trump’s claim that USMCA is a “brand-new deal,” changes to the trade agreement are cosmetic, with its central components intact. The most significant change, in fact, is the agreement’s name. Trump heavily criticized NAFTA on the campaign trail and continued to do so once in office. The ordering of the three North American countries is telling: Not only does the United States come first, but its traditional and once closest ally, Canada, is mentioned last. Trump notched another small win as the US tapped into the slight opening in the Canadian dairy market. But, Gertz argues that the United States will suffer in the long run given Trump’s combative treatment of close allies. — YaleGlobal