International Regulatory Enforcement (PHIRE)

Can the U.S.-Mexico Trade Agreement Replace NAFTA?

September 17, 2018

Scott M. Flicker, Charles A. Patrizia & Talya R. Hutchison

As the President seeks to conclude a new trade deal with Mexico—with or without Canada—he could find that his authority is severely curtailed by something called "trade promotion authority" or "TPA." Unless the White House follows the strict procedures established under TPA, the resulting agreement could be held up or even defeated by Congress, throwing in doubt the ability to reach a new agreement.

  • The renegotiation of NAFTA is being closely followed by companies in all three member countries, creating major uncertainty.

  • The current White House strategy to conclude a deal with Mexico and "bring Canada along" might fail for technical reasons.

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