National Post quoted Covington International Trade lawyer Arun Venkataraman throughout an analysis of Canada’s strategy of keeping a low profile as the July 1 deadline approaches for the three-party review of the Canada-United States-Mexico Agreement (USMCA), with trade experts weighing the risks and merits of Ottawa’s patience amid growing U.S. pressure.
Arun cautioned that the stakes of walking away from the agreement are significant for all parties. “The idea of truly walking away from North American alignment and integration … has serious adverse consequences for all of the economies,” he told National Post. He also warned against the temptation to wait for the U.S. midterm elections to shift the dynamic: “I would not encourage any party to wait for the midterms or to, in any way, think that the fundamental dynamic or core objectives of the United States will change with the midterms, even though Congress will potentially have a different composition.”
Looking ahead, Arun said he expects debate to center on tightening rules of origin, economic security alignment against non-market economies like China, digital services taxes, and dairy supply management — but stressed that “the purpose of a North American platform is to ensure that the three countries are all benefiting from this partnership, and that the gains are not at the expense of any of the other North American partners.”
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