Tag Archives: Canada

A modernized North American trade pact officially took effect last week, providing some continuity for manufacturers and agriculture.

Reuters says the U.S.-Mexico-Canada Trade Agreement is facing multiple disputes that still need to be resolved, exposing cracks in what was supposed to be a stronger North American “fortress of competitiveness.” The deal takes effect with all three countries mired in a COVID-inspired recession. April trade flow of goods between the countries is normally about $1.2 trillion every year, but the disease cut trade to its lowest monthly level in ten years.

The Trump Administration is currently threatening to implement new tariffs on aluminum imports from Canada. Issues currently nagging at the USMCA also include hundreds of legal challenges to Mexico’s new labor laws that ensure workers can freely organize and grant unions full collective bargaining rights. U.S. Trade Representative Robert Lighthizer calls the agreement the most “far-reaching” trade agreement in history.

However, he also says he won’t hesitate to file dispute cases “early and often” to enforce USMCA provisions. He says Mexico’s failure to approve U.S. biotech products is an example.

Shares of Beyond Meat fell seven percent last week after the CBC report that said McDonald’s stopped testing a burger made with its patties in Canada. McDonald’s’ in Canada says the test ended on April sixth, mentioning on Twitter that they “have no plans to bring it back to our menu at the current time.”

A Beyond Meat spokesperson tells CNBC that, “We can only comment generally and share that we were pleased with the test.” The company’s CEO Ethan Brown said in early May that the test concluded for no negative reason at all. “We feel very good about our relationship with McDonald’s,” Brown says. “We feel good about what’s going to be happening, both there and potentially elsewhere.” Back in September of 2019, McDonald’s joined the push for more meat alternatives in North America when it began testing the meat-free PLT burger in southwestern Ontario.

McDonald’s says there has been no change in its relationship with Beyond Meat, noting that they’re evaluating learnings from their recent test to inform future menu options.