Consider the amount of money involved in the trilateral USMCA trade agreement. It’s not just about trade and commerce between the USA, Canada and Mexico; the totality of the equation is derived from all of the third-party nations who trade into the North American trade bloc. There are tens-of-trillions at stake.
As we have outlined for several years the trilateral trade agreement has several material flaws. With the U.S. economy as the primary consumption economy, both Mexico and Canada derive significant benefits within the USMCA. Additionally, both Canada and Mexico leverage their unique positions to gain economic benefit from third parties who want to use either country as a backdoor into the U.S. market.
