“…Both the U.S. and Mexico have removed trade barriers, eliminated tariffs and subsidies…”
My, my – it looks like the use of tariffs as an economic tool (when wielded correctly) is actually having a positive result. As a Free Trader, if nationally based and anti-free trade tariffs and subsidies are eliminated, this can only be a good thing! Conservative Treehouse has a good synopsis of the intent and result of this decision announced earlier this week on the re-negotiation of the Mexican part of the NAFTA treaty – and note the note about Canada’s unwillingness (emphasis mine):
Under the original 1993 terms and Chapter 22 of the Implementation Act, Lighthizer notifies congress that trade parties have modified the terms; this is the Section 2202 notification of modification. Ninety days after the date of the notification the U.S. and Mexico can sign the new terms of agreement; congressional approval is not required. [Canada can still join the U.S-Mexico agreement but they need to act fast.]
If Canada refuses to join the agreement Lighthizer will follow-up the 2202 modification notification with a Section 2205 notice dissolving the U.S. from the 1993 agreement with Canada; the dissolution is official six months from the date of notification. During the 6 month period, before official dissolution, the U.S. and Canada can enter into new negotiations for a separate bilateral trade agreement.
