The just concluded US-Mexico trade agreement will have a 16-year life span and can be extended after every six-year review period, a US administration official said in a conference call on Monday.
WASHINGTON (Pakistan Point News / Sputnik - 27th August, 2018) The just concluded US-Mexico trade agreement will have a 16-year life span and can be extended after every six-year review period, a US administration official said in a conference call on Monday.
"With regard to the review and term-extension provision, the way it works is there's a period of a 16-year term on the deal, but every six years you have a review," the official told reporters. "At each six-year review, the parties can decide to extend the term another sixteen years."
If any of the countries decide not to extend their stay in the agreement, they will meet with the involved parties for a separate review each year in an effort to resolve any issues deterring their decision to commit to the deal another 16 years, the official said.
The six-year review period also serves as a safeguard by notifying the parties of any changes early enough so that it may not affect investments, the official said.
Earlier on Monday, US President Donald Trump announced the new trade agreement with Mexico, which will replace the current North American Free Trade Agreement (NAFTA). The agreement will still need to be ratified by Congress before taking effect.
Trump said the United States would try to start talks with Ottawa immediately although he said imposing auto tariffs on Canadian imports might be a better route. US Trade Representative Robert Lighthizer said in a conference call that Washington hopes Canada will join the new trade agreement reached between the United States and Mexico.
The NAFTA agreement was signed by the United States, Mexico and Canada and has been in place since 1994. Trump said NAFTA has hurt American jobs and has threatened to pull the United States out of the agreement since he took office.
