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Regional Integration in Latin America - The Pacific Alliance a Way Ahead
Editor's choice, Posts

What does the Stalemate with the NAFTA Renegotiation Mean for the Pacific Alliance?

NAFTA parties decided last week to hold only one extra round of negotiations before the end of 2017, after previous announcements that seven rounds would be carried out before the end of this year.  The decision was motivated by a stalemate reached during the fourth round of negotiations when some proposals made by the US were not well received by its Canadian and Mexican counterparts. The WTO-minus proposals made by US negotiations raised concerns over the likely success of the renegotiation process. Other controversial proposals included a sunset clause for the renewal of the agreement every five years, the elimination of the investor-state dispute mechanism and the more stringent rules of origin.

Photocredits: Ikpro/FreeDigitalPhotos.net
However, it is not likely that it would be Canada and/or Mexico who would put an end to NAFTA with a very thorny road ahead. Withdrawal from the US is also remote. Extensive legal debates on the matter include whether the US president could withdraw from the agreement without congressional approval and how far the executive’s powers go regarding foreign affairs relations.  An arsenal of legal and judiciary tools will be ready to prevent and block such an outcome (see CRS).

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October 27, 2017by Ana Maria Palacio

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Hello my name is Ana Maria Palacio. I have a PhD from the University of Melbourne. This blog is about my thesis project, the Pacific Alliance.

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