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New NAFTA's sunset clause is a ticking time bomb

The United States, Mexico and Canada just finished renegotiating the North American Free Trade Agreement (NAFTA), but the future of the new NAFTA remains uncertain. The United States was able to include a toned-down version of one of its so-called “poison pills” in the new deal: a "sunset clause" that will force new negotiations six years after the agreement comes into effect and could lead to it ending after 16 years.The new NAFTA's sunset clause is one of the most convoluted and unnecessary provisions ever seen in a trade agreement, and Congress should scrutinize the provision carefully and consider alternatives before approving the deal.The sunset provision states that the agreement shall terminate 16 years after it enters into force unless certain conditions are met. The conditions start with a "joint review" of the agreement after six years. At this review, the governments can express their desire to continue the agreement.

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The Hill
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