The Canada-United States-Mexico (ACEUM) agreement seems to protect Canada from the majority of customs tariffs that Donald Trump imposes on most countries. The American president hammers that he wants to modify the ACEum next year, when the agreement matters, but this narrative is based on a falsehood, says Me Geneviève Dufour, titular professor at the Faculty of Law of the University of Ottawa.
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“This is something that Mr. Trump wants us to believe that the agreement matters in a year. The agreement matters rather in 10 years. In fact, when the free trade agreement was concluded, it was concluded for 16 years. It’s very clear, it is written in the agreement. And every six years, countries must renew it for an additional 10 years, “she said in an interview with LCN.
Such an agreement cannot afford to give less than 10 years of predictability to markets and businesses, maintains the specialist in sustainable trade law.
“We cannot conclude an agreement for five years, six years or eight years. We want a very long -term agreement and we say that 10 to 16 years old, it is a good time for companies to have enough predictability to provide for their supply chains, their inputs, their export places, etc. ”, indicates Mr.e Dufour.
In 2026, Canada, the United States and Mexico must nevertheless negotiate possible modifications in the operation of the agreement. Any change must be unanimously approved by the three countries.
“It means that there is not one of the three countries that can decide to change it. And so in this case, that means that Canada is not in a position of weakness. That is to say that the agreement continues to exist for another 10 years from next July, ”says the law professor.
“You have to stop making Mr. Trump’s game, saying that yes, we have to renegotiate the agreement. We must not renegotiate the agreement. These are not the terms of the agreement and it is simply written that we must revise its operation, ”she adds.
Trump can however decide to withdraw from the Aceum, but such a scenario is unlikely, according to Me Geneviève Dufour.
“Let the odious to Mr. Trump the odious to withdraw, but he will not withdraw. Why do you think it excludes customs from the goods that are covered by ACEUM? This is because its economy needs it, ”she argues.
To see the full interview, watch the video above.
