U.S. Commerce Secretary: seeking to increase the sunset terms of the North American Free Trade Agreement for 5 years
According to foreign media reports, the U.S. Secretary of Commerce Ross (Wilbur Ross) on Thursday (September 14th) said that the United States is seeking to the North American Free Trade Agreement (NAFTA) added a 5 year sunset clauses, in order for the trade agreement to provide a regular, systematic review".
That is, Ross suggested that the North American Free Trade Agreement (NAFTA) into the "5 year plan", every 5 years need to review, or automatically void.
Ross said he and the US trade representative, Robert Lighthizer, thought it was a good mechanism and would recommend the proposal in the next round of NAFTA negotiations.
A Ross forum held in Politico that he and the United States trade representative Wright chize agree that it is necessary to increase the sunset clauses, and will put the matter in NAFTA modernization negotiations "". Plus this clause means that NAFTA will terminate automatically in 5 years without a renewal. It is not clear whether Canada and Mexico will support it.
Negotiators from the United States, Canada and Mexico will meet again in Ottawa on 23-27 September for the third round of negotiations.
Ross said the sunset clause was necessary because, when the NAFTA came into effect in 1994, the outlook for U.S. exports and employment growth was "very optimistic", but in reality it did not meet expectations.
Canadian and Mexico ambassadors opposed the idea, saying such terms would increase NAFTA uncertainty and affect long-term corporate planning. In this case, enterprises need to take into account the uncertainty of NAFTA when operating, so as to have no confidence in their long-term planning.