Many commentators appear worried that US President Trump will end up sabotaging any new NAFTA deal by insisting on new provisions that Mexico and Canada cannot accept.
|An article by Thomas Walkom suggests what Canada can do if Trump kills NAFTA. If U.S. President Donald Trump rejects the North American Free Trade Agreement, there are essentially three things that Canada can do. One reaction would be to try and keep what remains of NAFTA with Mexico and hope that Trump's presidency wont last too long. Negotiations could resume with a new US president more amenable to a free trade deal that all three nations could accept. However, there may be a deep-seated negative attitude towards globalism in the US that could continue even if Trump's presidency ends. A second reaction would be to try to negotiate a bilateral deal with the US. That is not likely to be successful as Trump will insist on terms unacceptable to Canada. If NAFTA is ended then the 1989 US-Canada Free Trade Agreement would automatically come into force. Trump might very well demand it be renegotiated and end up rejecting it as well.|
"Proportionality is "unique in all of the world's treaties," writes Richard Heinberg, a noted California energy expert... It's unclear how many other countries the U.S. has tried to impose an energy proportional sharing chapter on, but it is clear none has bitten. Heinberg concludes that "Canada has every reason to repudiate the proportionality clause, and to do so unilaterally and immediately."Mexico is not subject to the proportionality clause. Some of the new demands the US has made that may scuttle the negotiations are mentioned in the appended videos. One demand, the sunset clause seems quite reasonable to me, although both Mexico and Canada as well as many business leaders are strongly against it. The problem is that Trump's ideology of America First places US and not global corporations interest first, as well as attempting to get them to produce in the United States. Global business wants agreements favorable to them to last indefinitely without being subject to the threat of a sunset clause or any nationalist demands akin to those of Trump.