Published: Thu, October 12, 2017
World | By Paul Elliott

US Offers Proposal That Could Kill Nafta in 5 Years

US Offers Proposal That Could Kill Nafta in 5 Years

Harper was not optimistic about a satisfactory agreement in light of deep damage done to the USA economy by free trade generally.

Asked by a reporter if he would make a trade pact with Canada if he can not reach agreement with Mexico in the NAFTA negotiations, Trump said: "Oh sure, absolutely".

Combined with other reported demands, it becomes clear that Trump not only doesn't expect - but also does not want - to reach a renewed NAFTA deal, unless it is essentially a gutted contract that favours the U.S.at all times. On the campaign trail, he called NAFTA a job-killing disaster.

Replying to a question, Trump said he would consider a trade pact with Canada minus Mexico, adding that both the U.S. and Canada wanted to protect their workers. "My optimism is because I know how good NAFTA has been for million of citizens of Canada, the United States and Mexico".

For its part, the Mexican Government seems resigned to the possibility that NAFTA may be coming to an end for the country.

After having been confronted with the threats of the president Donald Trump on the termination of the free trade Agreement north american (NAFTA), Justin Trudeau says he is ready for any eventuality, Wednesday, and even to sign an agreement without the Mexico.

"It's possible we won't be able to make a deal, and it's possible that we will", he said. "We need to talk about labor costs and how wages are much cheaper in Mexico".

A rule requiring a hefty portion of automobiles to be made in the US, not just in the three-country NAFTA zone. "I said we'll renegotiate". In 1994, Mexico joined NAFTA and has been a full member of the agreement ever since.

Trade experts said the NAFTA talks were likely to stall in the face of aggressive US attempts to sharply increase content requirements for autos and auto parts.

People briefed on USA proposals to be presented this week said Washington is seeking to sharply lift North American content threshold in auto manufacturing.

Canada is the largest secure supplier of energy to the United States.

"These will be met with widespread opposition from Canada and Mexico.

I think it's just a bridge too far", said Wendy Cutler, the Asia Society's Washington policy director and former chief USA negotiator for the Trans-Pacific Partnership trade deal canceled by Trump. Representatives of the auto industry warned some of the US demands could raise prices for vehicles. Mexico strongly opposes such a move, which would damage its own vehicle industry.

According to a schedule seen by Reuters, meetings on government procurement, cross-border services trade, environmental issues and state-owned enterprises were set to conclude for the current round on Thursday. Scheduled talks in this session have been extended by two days to Tuesday. Trump left open the possibility that the United States would seek to establish bilateral deals with Canada and Mexico if talks were to break down.

On the issue of taxation in the United States of 300 % of the countervailing duties and anti-dumping duty on the aircraft of the CSeries by Bombardier, the prime minister was said to have had frank discussions, but hard, with the president and expressed his disagreement.

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