U.S. 'beginning' internal discussions about renewing North American trade pact

For anyone with lingering night terrors from the last renegotiation of NAFTA, the notion of reopening the pact might evoke the trailer for a classic horror movie sequel: It's baaaaa-aaaack. 

But this time is different, says the U.S. envoy to Canada.

In an interview with CBC News, Ambassador David Cohen said officials in his country have begun informal talks to prepare for new negotiations as required by the pact.

We've just passed the halfway mark, three years, to the sixth-anniversary milestone of the new North American trade deal where countries must start meeting to discuss future changes.

"On the U.S. side, we are just beginning to have our internal discussions about what we might like to talk about with Mexico and Canada as the sunset approaches," Cohen said in an interview.

Cohen sat for a wide-ranging interview this week during a milestone of his own: the second anniversary of his arrival in Ottawa in December 2021, after being confirmed in the U.S. Senate.

He expressed confidence that, this time, the process will be devoid of the existential drama that gripped the negotiations in 2017-2018. One notable difference is that Joe Biden's administration has avoided hinting, even inadvertently, at ending the pact, right down to its choice of language.

Unlike Donald Trump's team, the current U.S. Trade Representative's office refuses to use the term "sunset clause." 

The current team prefers the more co-operative-sounding "joint review" when describing the process ahead, enshrined in the new NAFTA's Article 34.7.

Its rules require countries to start meeting in 2026 and every year after, where they have two options: renew the agreement, or start negotiating changes.

The countries then get 10 years to renew the pact, known in the U.S. as USMCA. If they fail to do so, the agreement sunsets in 2036 — meaning, it's dead.

Cohen says nobody is talking now about blowing up the deal. 

In fact, he noted that it's frequently touted in Washington by members of both parties as the model example of a modern trade agreement.

"I've heard nothing about wanting to get rid of USMCA," Cohen said, noting that even if they don't like some dispute-panel decision, nobody in Washington is talking about blowing up the pact known there as USMCA and in Canada as CUSMA.