Financial Times: Poisoning of Global Trade

Mexico and Canada are trying to save the North American Free Trade Agreement, which has delivered trade, efficiency and jobs to three nations. The Trump administration views the trade agreement as unfair. Edward Luce, writing for the Financial Times, describes three demands that suggest the United States is not serious about negotiating an improved agreement: imposing a “sunset” clause every five years, requiring that half of all content in cars made in the region be sourced to the United States and scrapping the dispute resolution process. Luce points out Trump has proposed revisions for other deals, too, including the Iran nuclear deal. Trump is impatient for China to convince North Korea to end its nuclear program even though the United States is backtracking about the nuclear deal for Iran. He may use trade as a weapon against China. Trump could try sanctions, but China would appeal to the World Trade Organization, Luce explains, and likely win. Trump supporters exepct that disruptons to trade agreements will help them "win," by improving their wages, jobs and communities. But all parties, especially the United States, can anticipate big losses. – YaleGlobal