Chinese embassy in Canada condemns ‘US veto’ clause in North America trade deal

The Chinese embassy in Ottawa has publicly condemned a “poison bill” clause in the new North American trade deal that gives Washington an effective veto over any attempt by Canada or Mexico to agree to a free-trade deal with a “non-market economy” – a provision that is widely seen as targeting Beijing.

The Chinese embassy said in a statement dated Friday that the article 32.10 in the US-Mexico-Canada Agreement (USMCA) was “fabricating the concepts of ‘market country’ and ‘non-market country’ outside the World Trade Organisation framework” and was “the excuse made by some countries to shirk their obligations and refuse to meet their international commitments”.

In the statement, the Chinese embassy hinted that Beijing was angry about America’s “hegemonic acts” and felt pity for Canada for surrendering part of its “economic sovereignty”.

“We condemn the hegemonic acts by related countries of publicly interfering with the sovereignty of other countries, and we feel sorry for the damaged economic sovereignty of the countries concerned,” the embassy’s spokesperson, Yang Yundong, said in the statement.

The statement was the first public response from a Chinese government agency to the clause since the USMCA deal was reached a week earlier.

The new deal, which replaces the 24-year-old North America Free Trade Agreement, stipulates that any of the three parties to the deal has the right to be informed about any negotiations about a free-trade agreement with a “non-market economy” at an early stage, and can review any such deal signed by another member.

If one of the three were to sign a free-trade deal with a non-market country, either of the other two would have the right under article 32.10 to terminate the trilateral USMCA with six months’ notice and form a deal on the same terms with the third party.