Recent US-Cambodia and US-Malaysia trade agreements include ‘poison pills’ echoing an earlier precedent, United States-Mexico-Canada Agreement (USMCA). For trading partners navigating intensifying US-China geopolitical rivalry, these provisions complicate hedging strategies. In practice, the bite of these provisions may be less than their formal language suggests. The likely impact of these provisions on trade policy choice depends on country-specific factors including export dependence, alternative market access, and expected treatment by the United States after the termination of any agreement.
Journal of World Trade