Talks now underway in Mexico City between U.S., Canadian and Mexican officials to renegotiate the North American Free Trade Agreement (NAFTA) will have a profound impact on the economies of all three nations.
China will be watching closely.
If negotiators can’t reach agreement on key provisions of the 23-year-old trade pact it is in danger of outright termination. NAFTA has dramatically increased trade between the three member nations — from $290 billion in 1993 to $1.1 trillion last year.
Should NAFTA die, eager foreign competitors will be ready to pick up the pieces and welcome even more North American manufacturers to relocate, to lower their costs of doing business.