The United States is seeking to unite other countries against China by including “poison pill” provisions in its future trade deals, as it did in the recent agreement with Canada and Mexico, says US Commerce Secretary Wilbur Ross.
Last week, US President Donald Trump announced that Canada and Mexico had agreed to replace the three-way North American Free Trade Agreement (NAFTA) with the US-Mexico-Canada Agreement (USMCA), which he said was fairer towards US businesses.
The USMCA, which still awaits congressional approval, says on the occasion that any of the three countries enters a trade deal with a “non-market country” the other two can quit the deal in six months and a bilateral trade agreement of their own.
This provision, which originates from Trump’s ongoing tariff war against China, effectively gives Washington a veto over Canada and Mexico’s other free trade partners.
“It’s logical, it’s a kind of a poison pill,”…