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The Hill
19-06-2025
- Business
- The Hill
6 top issues to review in US-Mexico-Canada trade
The second Trump administration has come out swinging on trade. New tariffs — some targeted, others startlingly wide-ranging and broad — have reignited uncertainty across global supply chains and forced America's economic allies to find ways of placating the White House. For Canada and Mexico, Washington's partners in Trump's U.S.-Mexico-Canada Agreement, this has been a stark reminder of how easily trust can erode, even in the most integrated trade relationship in the world. But the first formal review of the agreement in 2026 offers the opportunity to not only overcome this uncertainty but also to build for a stronger shared future. In terms of trade, the stakes could not be higher: Mexico and Canada are the United States' no.1 and no. 2 trading partners. In 2024, U.S.-Mexico trade reached $840 billion; with Canada, the number was $761 billion (compared with $582 billion in two-way trade with China). These are intricate trading relationships, and the review process will be more than a box-checking exercise. Anxiety over the process is already rampant in Washington and among investors. But the U.S.-Mexico-Canada partners don't just trade enormous amounts with each other; they build things together and export them to the world through complex supply chains. Therefore, the review process is also a chance to modernize North America's trade architecture, reinforce strategic industries, and rebuild the foundations of regional trust and cooperation. America's competitiveness depends heavily on the integrated North American manufacturing platform, and thus on the success of Mexico and Canada, its partners. There are many contentious issues requiring resolution, too many to mention here. However, we can currently identify six key areas where substantial effort will be necessary. Addressing these areas holds the potential for significant improvements in regional competitiveness and economic security. A foreign investment committee for North America. The issue of competition with China was marginally addressed in Article 32.10 of the U.S.-Mexico-Canada Agreement with a provision concerning trade with 'non-market economies,' but the topic of Chinese investment in the region was not covered. The Committee on Foreign Investment in the United States, an interagency body, is tasked with that role to assess and mitigate national security risks within the U.S., while Canada has a similar entity. Mexico, however, has not established such a mechanism. Implementing a trilateral or regionally coordinated investment screening system, tailored to the shared interests and legal frameworks of the U.S., Canada and Mexico, could address this gap effectively. Rules of Origin Are Only as Good as Our Tools to Enforce Them. The North American agreement's stronger rules of origin, especially for automotive and steel products, were a signature achievement. But enforcement remains a weak link. Self-certification and uneven oversight have created loopholes for transshipped and misclassified goods. To address this, North America should move toward a shared product passport system — a digital framework that enables real-time verification of supply chain data and regional content. Without it, even the best rules risk being undermined by outdated systems and bad actors. A Reinvigorated Approach to Energy and Critical Minerals. Chapter 8 of the U.S.-Mexico-Canada Agreement was a compromise: The U.S. and Canada sought more liberalization and investment protections in the energy sector, while Mexico prioritized sovereignty. The review must establish commitments to cooperation, regulatory coordination and investor protections, especially in Mexico, where uncertainty has hindered investment. But just as importantly, there is now an opportunity to establish institutionalized cooperation between the partners in building regional critical minerals supply chains, a key area of strategic competition with China. Dispute Resolution Must Be Enhanced. When the USMCA replaced the North American Free Trade Agreement, dispute settlement mechanisms were seriously weakened. Over the past six years, the need for stronger investor protections and legal recourse in the face of expropriation and regulatory abuse has become clear, especially in the case of Mexico. The agreement's dispute settlement systems must be strengthened to ensure they are timely, impartial and resilient against political pressure. If North America wants to remain an attractive investment environment, confidence in the rules must go hand in hand with confidence in how they're enforced. Labor Standards and the Gap Between Words and Action. The current agreement's labor provisions marked a leap forward from NAFTA. But implementation is inconsistent, to say the least. Labor reforms in Mexico are still catching up with commitments. The review is an opportunity to close the implementation gap — and to make enforcement credible across all three countries, for the good of workers across the region. Mexican President Claudia Sheinbaum should seize the opportunity to advocate for better working conditions for her people. Don't Ignore Digital Trade. The current agreement's digital trade provisions, contained in Chapter 19, are already aging. They lack the clarity and scope needed for today's data-driven economy, especially on cross-border flows and artificial intelligence. Mexico lags far behind the U.S. and Canada, but has a dynamic startup and entrepreneurial culture in some of its major cities, in part spurred on by digital nomads now living there. Harnessing the combined potential of the three countries and setting common standards and rules will benefit the entire regional economy and greatly assist in the intensifying tech race with China. The early days of the Trump administration's second term have strained North American cooperation, but the review is a chance to reverse that trajectory. It can help the U.S., Canada and Mexico recommit to a shared vision of prosperity, one grounded in transparency, innovation, and resilience. In 2020, the U.S-Canada-Mexico Agreement was sold as a modernization of NAFTA. In 2026, its review must become a modernization of our shared commitment to lead. Let's not settle for maintenance. Let's build something stronger. Duncan Wood is CEO of Hurst International Consulting and an independent analyst focused on North American trade, energy, and supply chain security.
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Business Standard
24-05-2025
- Business
- Business Standard
Trump signals approval of Nippon deal, US Steel to Stay in Pittsburgh
President Donald Trump said on Friday that US Steel will keep its headquarters in Pittsburgh as part of what he called a planned partnership that seemed to signal that he'll approve a bid by Japan-based Nippon Steel to buy the iconic American steelmaker. Still, Trump's statement left it vague as to whether he is approving Nippon Steel's bid after he vowed repeatedly to block it. But investors seemed to take it as a sign that he would approve it, sharply pushing up US Steel's shares. Nippon Steel's nearly $15 billion bid to buy US Steel was blocked by former President Joe Biden on his way out of office and, after Trump became president, subject to another national security review by the Committee on Foreign Investment in the United States. Trump said in a statement that after much consideration and negotiation, US Steel will remain in US, and keep its Headquarters in the Great City of Pittsburgh. What Trump called a planned partnership will create at least 70,000 jobs and add $14 billion to the US economy, he said, although it wasn't clear what the terms of the deal would be or who would own US Steel under the arrangement. Josh Spoores, the Pennsylvania-based head of steel Americas analysis for commodity researcher CRU, said he's seeing this partnership' is a green light for the acquisition. The companies didn't immediately comment. Shares of US Steel jumped 21 per cent on the news, and continued rising in aftermarket trading. Keeping US Steel's headquarters had always been part of Nippon Steel's bid to buy it. To sweeten the deal, Nippon Steel had offered up a $2.7 billion commitment to upgrade facilities in Pennsylvania and Indiana on top of an earlier commitment to spend $1.4 billion. However, US Steel's CEO David Burritt warned last September that blocking Nippon Steel would mean US Steel would largely pivot away and it would raise serious questions about remaining headquartered in Pittsburgh. US Steel's board and stockholders approved Nippon Steel's bid last year. It has been opposed by the United Steelworkers union. The union had no immediate comment Friday. As recently as December, Trump said he was "totally against the once great and powerful US Steel being bought by a foreign company. Then in February, Trump suggested that Nippon Steel wouldn't buy US Steel, as it had planned, but that it would instead invest in US Steel. Last month, Trump ordered a new national security review of Nippon Steel's proposed bid.
Yahoo
23-05-2025
- Business
- Yahoo
U.S. Steel shares surge after Trump supports Nippon pact
--Shares of U.S. Steel (NYSE:X) climbed 23% today following President Donald Trump's announcement of the company's decision to keep its headquarters in the United States, coupled with a new partnership with Nippon Steel. The move is expected to generate significant economic benefits, including the creation of approximately 70,000 jobs and an addition of $14 billion to the U.S. economy. Trump's statement on Truth Social emphasized the revival of "American Made" steel and the anticipated positive impact of his tariff policies on the industry. He highlighted that the partnership would lead to the largest investment in the history of Pennsylvania, with substantial developments to take place over the next 14 months. The market's optimistic response comes in the wake of the White House confirming that Trump received a recommendation from the Committee on Foreign Investment in the U.S., which reviews such partnerships for national security implications. The announcement aligns with Trump's broader America-first agenda, which has historically resonated with investors in the manufacturing sector. The planned partnership between U.S. Steel and Nippon Steel is set to reinforce the company's presence in the U.S. and enhance its competitive edge in the global steel market. While the market has responded favorably to the news, it is important to note that the details of the partnership and its implications for U.S. Steel's future performance are yet to be fully disclosed. Related articles U.S. Steel shares surge after Trump supports Nippon pact TSX closes mixed amid more Trump trade turmoil Informatica stock soars on acquisition talks; Salesforce dips
23-05-2025
- Business
Trump says US Steel will keep HQ in Pittsburgh as part of $14B 'partnership' with Japan-based Nippon
WASHINGTON -- President Donald Trump said Friday that U.S. Steel will keep its headquarters in Pittsburgh as part of what he called a 'planned partnership' between the iconic American steelmaker and Japan-based Nippon Steel, which has sought to buy it. Nippon Steel's nearly $15 billion bid to buy U.S. Steel was blocked by former President Joe Biden and, after Trump became president, subject to another national security review by the Committee on Foreign Investment in the United States. Trump said in a statement that 'after much consideration and negotiation, US Steel will REMAIN in America, and keep its Headquarters in the Great City of Pittsburgh.' What Trump called a 'planned partnership' will create at least 70,000 jobs and add $14 billion to the U.S. economy, he said, although it wasn't clear what the terms of the deal would be or who would own U.S. Steel under the arrangement.
TechCrunch
16-05-2025
- Business
- TechCrunch
Mystery investor's attempt to stop Canoo asset sale shot down by judge
The judge in Canoo's bankruptcy case has blocked an attempt by a mysterious financier to disrupt the sale of the EV startup's assets. In a hearing Tuesday, Judge Brendan Linehan Shannon ruled the financier, a UK-based man named Charles Garson, lacked standing to request the sale to Canoo's own CEO be vacated. While Garson had told the court he was willing to pay as much as $20 million for Canoo's assets, he missed the deadline to formally submit that bid. Garson also never made it clear where he was sourcing that money from, causing the bankruptcy trustee in the case to raise concerns the bid could get blocked by the Committee on Foreign Investment in the United States. The last remaining challenge to the asset sale comes from Harbinger Motors, a commercial electric trucking startup created by a handful of former Canoo employees. Harbinger objected to the sale before it was finalized in April. The judge denied Harbinger's objection, but the company has since appealed that decision. Jason Angelo, a lawyer for Garson, framed his client's attempt to disrupt the sale as a 'David versus Goliath type matter.' Angelo tried to make the case during the hearing that Garson's conversations with the bankruptcy trustee — which were submitted to the court under seal — led him to believe he had until the end of April to formalize a bid. He also repeated the claims made in Garson's original filing about the sale allegedly being unfair because the assets ultimately went to Canoo's CEO Anthony Aquila. 'I think it would make sense here to allow a redo, so to speak,' Angelo said, citing 'the sincerity and earnestness' of his client. 'I know that is asking a lot, I do.' Mark Felger, the lawyer representing the bankruptcy trustee, disagreed by saying there was little in dispute and the negotiations were fair. 'We think it's pretty clear-cut in terms of the facts. There's no he said, she said,' he told the judge. 'Your Honor, it's all in the emails. I've read them over many, many times. I don't see any miscommunication. I don't see any deception. It was clear how we were proceeding. He knew there was a sale hearing on the ninth, and he chose not to file anything.' Techcrunch event Join us at TechCrunch Sessions: AI Secure your spot for our leading AI industry event with speakers from OpenAI, Anthropic, and Cohere. For a limited time, tickets are just $292 for an entire day of expert talks, workshops, and potent networking. Exhibit at TechCrunch Sessions: AI Secure your spot at TC Sessions: AI and show 1,200+ decision-makers what you've built — without the big spend. Available through May 9 or while tables last. Berkeley, CA | REGISTER NOW Regarding the fairness of the sale process, Felger said he and the trustee 'were concerned about this insider sale [to the CEO].' 'But they're the ones who stepped up, right and we negotiated hard. We went back and forth a dozen times on that agreement,' he said. Felger also repeated the trustee's claims, made in earlier filings and testimony, that the cost of maintaining Canoo's assets — especially its battery packs — was costing too much money. Letting a sale process drag out for too long could damage the value of the estate, he said. Judge Shannon, after hearing the arguments from Angelo, Felger, and a lawyer for Aquila, ruled swiftly against Garson. He said the financier lacked standing to properly argue his motion to vacate the sale, since he is not owed any money by Canoo and did not submit a formal bid before the deadline. 'I am sympathetic to Mr. Garson's frustration at what I sense and am satisfied is a genuine interest to provide a superior bid and purchase these assets,' Shannon said. 'But it was a complex process run by the chapter seven trustee that I don't think Mr. Garson had a full handle on exactly what the process was, and what was necessary in order to fully engage in that process.' Shannon also pointed out it was made clear to the trustee from the beginning who Aquila was, and that his role as CEO alone did not preclude him from buying his company's assets.
