A Report on the Political Implications of the CUSMA Trade Agreement

This report examines the political implications of the Canada-United States-Mexico Agreement (CUSMA), analyzing three articles that offer different perspectives on the trade deal. The report explores the historical context of CUSMA, comparing it to NAFTA and highlighting its potential impact on the economies and political relationships of the three countries. It analyzes articles focusing on the agreement's positive effects, potential negative consequences, and its role in economic and political integration. The report also incorporates commentaries from Noam Chomsky and media representations from CTV News and Forbes, offering diverse viewpoints on the agreement's significance and potential outcomes. The conclusion emphasizes the agreement's potential to boost development, promote efficient technology, and foster international cooperation, aligning with McLuhan's concept of a "global village."

Running Head: POLITICAL IMPLICATION OF CUSMA
POLITICAL IMPLICATION OF CUSMA
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Running Head: POLITICAL IMPLICATION OF CUSMA
Executive Summary
The purpose of the study is to analyse three articles- “The Future of North America’s
Economic Relationship: From NAFTA to the New Canada-United states-Mexico Agreement
and Beyond”, “Canada-US Security Cooperation: Interests, Institutions, Identity and Ideas”,
The Trade-Security Nexus: The New Reality in Canada- US Economic Integration” All of
these articles look at the new Canada-United States-Mexico Agreement through the different
prisms. After analysing those three articles, the report reaches to a conclusion and provide
some suggestions for successful implementation of the agreement.

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Running Head: POLITICAL IMPLICATION OF CUSMA
Introduction
CUSMA is a trilateral trade agreement, which was signed between Canada United
States and Mexico on 30th November 2018. There are many articles that delve into the rules
and regulations explained in the agreement and find out the political implications behind it.
The first of those three articles selected, explains the agreement and its positive impacts on
overall economy of Canada. The first article also defines this agreement more beneficial to
remove all the collision between the Canada and United States. The second article talks about
the possible negative impacts of the agreement on. The third article, highlights the
importance of the economic and political integration and concluded that this agreement will
improve the economic security of both the countries.
Body
Historical background
The new Canada-United states-Mexico Agreement is considered a replacement of the
old North American Free Trade Agreement, which was signed between US and Canada
nearly 30 years ago and came into force in 1989. CUSMA has some similarities with
NAFTA, though it has greater economic and political implications. The CUSMA has the
provision for the free trade. It has the potentiality to bring a balance in the BOP, BOT as well
as the political relationship of both the countries (international.gc.ca, 2019, online, Internet,
26 Feb. 2019. , Available: https://international.gc.ca/trade-commerce/assets/pdfs/agreements-
accords/cusma-aceum/cusma-00.pdf).
First Article-
“The Future of North America’s Economic Relationship: From NAFTA to the New
Canada-United states-Mexico Agreement and Beyond” states that the new CUSMA will

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Running Head: POLITICAL IMPLICATION OF CUSMA
strengthen the long-lasting economic as well as political relationship between US, Canada
and Mexico. It has provisions for fairer as well as freer market. It will accelerate the growth
of the agricultural sector. Automobile and ancillary industries of US, Canada and Mexico will
be benefitted by this agreement. Finally this article concludes that the political implication of
this agreement is capable of leaving long-lasting impact on the overall development of these
three countries (Lilly et al).
Second Article-
“Canada-US Security Cooperation: Interests, Institutions, Identity and Ideas” focuses
on the probable negative impacts of CUSMA. It points out the existence of some factors,
which may delay the approval of the agreement, which may cast upon adverse effects on the
economic and political relationship of these three countries. These are-uncertainty in the
congressional approval of United States, difference in the national priorities which create
impedes for Canada to enter to the market of United States and hamper the economic security
of Canada and Mexico (Hataley, Todd and Christian).
Third Article-
The Trade-“Security Nexus: The New Reality in Canada- US Economic Integration”
highlights both positive as well as negative implications. It agrees that several factors may
create hindrance in the approval of the agreement but this could be easily outfought.
According to this article, this agreement will not only expand the business relations but also
establishes the concept of national integrity. This agreement will enhance the assistance of
North America to Canada in the defence sector. For. According to this article, this
agreement will accelerate the competitiveness in the global as well as regional market and,
also support the growth of the Small-medium and micro sized industries. Thus, it has the
potentiality to reunite United States and Canada (Molot, Maureen).

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Running Head: POLITICAL IMPLICATION OF CUSMA
Chomsky’s Commentaries
Noam Chomsky always criticized America’s foreign policies. He always commented
on the corrupted political system and unethical strategies adopted by the government.
According to him the free trade policies of United States is actually a strategy to show off its
power and generosity and capture the markets of Canada and Mexico.
Representation by the media
According to CTV news this agreement allows US free access to dairy market of
Canada. They are seeing this agreement through the prism of politics, which reflects in their
comments. According to them, This agreement is a political instrument, which is used with
an aim to set an example of harmony and change the myth about the conservativeness of the
US politics, but the actual intention of Trump is to enhance profits and make Canada and
Mexico economically dependent on US (CTVNews, "The eight biggest Canadian political
stories of 2018", CTVNews, 2019, online, Internet, 26 Feb. 2019. , Available:
https://www.ctvnews.ca/politics/the-eight-biggest-canadian-political-stories-of-2018-
1.4194253).
Again, Forbes does not consider this agreement magnificent. According to this media
house this agreement is actually an evidence of the lack of foresightedness of Trump.
According to them this agreement will not be fruitful for the economic development of
United States (Forbes.com, "USMCA Is Not The Magnificent Trade Deal Trump Says It Is",
Forbes.com, 2019, online, Internet, 26 Feb. 2019. , Available:
https://www.forbes.com/sites/johnbrinkley/2018/10/08/usmca-is-not-the-magnificent-trade-
deal-trump-says-it-is/#57ea0c654054).

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Running Head: POLITICAL IMPLICATION OF CUSMA
Conclusion
In the conclusion, it can be stated that, this new deal will not only accelerate the
development of the agricultural sector, automobiles industries of those three countries, it will
also aid the usage of efficient and environment friendly technology for production. This will
in turn assist all three countries to increase production and gain from trade. In fact, the basic
concept of this agreement is compatible with McLuhan’s concept of “global village” which
states that the advancement of technology has contracted the world into a small village.
.

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Running Head: POLITICAL IMPLICATION OF CUSMA
References
Lilly, Meredith, Hugo Perezcano Díaz, and Christine McDaniel. "The Future of North
America’s Economic Relationship: From NAFTA to the New Canada-United States-Mexico
Agreement and Beyond." (2019).
Molot, Maureen Appel. "The trade-security nexus: The new reality in Canada-US economic
integration." American Review of Canadian Studies 33.1 (2003): 27-62.
Hataley, Todd, and Christian Leuprecht. "Canada–US Security Cooperation: Interests,
Institutions, Identity and Ideas." Canada–US Relations. Palgrave Macmillan, Cham, 2019.
87-104.
CTVNews. "The eight biggest Canadian political stories of 2018". CTVNews, 2019. Online.
Internet. 26 Feb. 2019. . Available: https://www.ctvnews.ca/politics/the-eight-biggest-
canadian-political-stories-of-2018-1.4194253.
international.gc.ca, 2019. Online. Internet. 26 Feb. 2019. . Available:
https://international.gc.ca/trade-commerce/assets/pdfs/agreements-accords/cusma-aceum/
cusma-00.pdf