The USMCA is far from perfect, but it’s worlds better than NAFTA. Now Trump is forcing Congress’ hand. Trump will formally terminating NAFTA and give Congress an ultimatum. Either pass the USMCA or having nothing at all. Communist-socialist Democrats have already begun threatening that they will not pass the USMCA.
| Trump formally terminating NAFTA – Congress has choice USMCA or nothing |
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BREAKING: Trump says he'll be 'formally terminating NAFTA,' says Congress will have choice between replacement or nothing
— The Associated Press (@AP) December 2, 2018
The USMCA is structurally more beneficial to the U.S. and Mexico than Canada.
Factually, it was the U.S. and Mexico who wrote the agreement, and Canada joined in only to mitigate their losses after the majority growth architecture was constructed. There is almost nothing inside the USMCA agreement which structurally expands the Canadian economy; it is a very weird trade-dynamic.
It was the exploitative nature of the NAFTA construct that benefited Canada and Mexico to the detriment of the United States. As a result, President Trump is OK with the final USMCA result which removes the majority of the parasitic benefits; and he is ok with no USMCA and no NAFTA, and a return to pre-NAFTA trade structures.
Like NAFTA the USMCA is a “trade agreement”, with various opt-out initiatives for any party; it is not a trade “treaty” – and therefore only requires a simple majority vote.
President Trump and USTR Lighthizer really have created a Win/Win.