President Donald Trump’s election shook the foundations of America’s alliance with two of its most important allies and trading partners: Canada and Mexico. His campaign promise to build a wall on the southern border of the U.S. and his tense relationship with Prime Minister Justin Trudeau, made renegotiating NAFTA a particularly difficult task. The U.S. had a clear advantage in negotiations due to its economic and political significance on the global stage. Trump’s preference for bilateral instead of multilateral deals increased pressure on the NAFTA signatories. Therefore, when Mexico signed a revised NAFTA or USMCA, Canada had no choice but to follow suit. Big oil, however, seems to be the real winner in this geopolitical battle. The proportionality clause dies a silent death NAFTA was signed in 1994 when the U.S. was still very much dependent on foreign oil and global warming wasn’t as big of a topic as […]