USMCA urged to form joint mechanism to address China’s national security threats

Shipping containers with flags of Mexico and China. The USMCA has been encouraged to adopt stronger economic security rules with China. Illustration: Shutterstock

The hearing convened by the Office of the US Trade Representative on Wednesday – the first public session before next July’s joint review of the free trade deal – kicks off three days of testimony from more than 140 representatives from business, think tanks, academia and advocacy groups.

“One cannot make a strategic argument about the value of economic integration without also having a pragmatic and specific plan for ensuring that integration reduces, rather than exacerbates, economic and national security risks,” said Emily Kilcrease, a senior fellow at the Centre for a New American Security think tank.

She urged the three countries to adopt stronger economic security rules – from export controls to investment screening – and to fast-track licensing exemptions and other approvals for one another. She also recommended coordinating tariffs on China while exempting each other from those measures.

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In a written submission, she recommended that the three North American economies create an “economic security committee” to oversee implementation of such commitments.

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