Stalled US-Mexico-Canada Trade Talks Leave an Opening for Beijing, Expert Warns

A trade specialist says the absence of trilateral negotiations on North America's trade pact is playing into China's hands

Trade talks among the United States, Mexico and Canada aimed at renewing their cross-border trade agreement have stalled, and a U.S. trade expert warned that Beijing is benefiting from the delay, according to Al Jazeera.

The expert said the three North American partners need to hold trilateral negotiations to get a deal signed, arguing that continued gridlock weakens the bloc's position relative to China at a moment when global trade patterns are shifting rapidly. The remark, that "Beijing is laughing" at the impasse, underscores concern among trade specialists that internal disputes among the three countries are undercutting a trade relationship that underpins tens of millions of American jobs.

The United States, Mexico and Canada rely on an integrated trade agreement to govern everything from automobile manufacturing to agricultural exports, and prolonged uncertainty over its terms can complicate business planning for companies operating across the three countries. Manufacturers with supply chains that cross North American borders are particularly sensitive to delays, since shifting rules can affect where they choose to invest.

The stalled talks come as Washington has separately been pursuing tougher trade measures against other partners, including tariff threats tied to the conflict in the Middle East and stepped-up scrutiny of Chinese exports. Trade analysts say a fractured North American bloc could leave the U.S. with less leverage in those broader negotiations.

— Compiled from reporting by Al Jazeera.