Trump’s new loyalty test: Don’t make trade deal with China



Luiza Ch. Savage, Adam Behsudi, Alexander Panetta and Lauren Gardner | Politico

The fine print of the new United States-Mexico-Canada Agreement includes a provision that requires any country in the pact to give three months’ notice to other parties if it is entering into trade negotiations with a nonmarket economy, which the U.S. considers China to be. If one country enters into a deal with China or another similar economy, then that nation can be kicked out of the newly negotiated trade pact.

The language has President Donald Trump’s fingerprints on it, and represents an escalation in the China trade war by essentially pulling Canada and Mexico into the U.S. camp when it comes to trade with China. The clause represents a loyalty test that is expected to serve as a template for future U.S. trade agreements with other countries.

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