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USMCA Is Up For Review. The US Would Be Foolish Not to Extend It

By: Alex Durante

As the United States, Mexico, and Canada approach the first formal review deadline for the US-Mexico-Canada Agreement (USMCA) this July, policymakers face a straightforward choice. Either extend the agreement and preserve at least some semblance of stability in North American trade, or open the door to years of economic uncertainty and potentially higher tariffs.

President Donald Trump has decided against a clean extension, which may come as no surprise. Given this administration’s track record on trade, he has chosen to allow the bloc of countries to enter a prolonged period of annual reviews, renegotiations, and, possibly, a shift to bilateral deals.

No matter what theater may follow this decision, failure to extend USMCA would be a mistake. Though disagreements exist, USMCA deserves to remain at the center of our three nations’ economic relationship.

This is a preview of our full op-ed originally published in Washington Examiner.

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About the Author

Alex Durante Tax Foundation
Expert

Alex Durante

Senior Economist

Alex Durante is a Senior Economist at the Tax Foundation, working on federal tax policy and model development. Alex worked as a research assistant at the Federal Reserve Board and served as a staff economist on the Council of Economic Advisers.