Canada’s new trade agreement with the United States and Mexico—the USMCA, which replaces NAFTA—is not just a good deal because of the removal of uncertainty for Canadian business. It also strengthens trade ties with the United States, potentially at China’s expense.
Buried deep in the agreement is Article 32.10, which puts forth a set of requirements that any USMCA partner has to satisfy should it seek a bilateral free-trade agreement with a “non-market economy,” i.e. China.