US, Mexico trade pact will occur with or without Canada
01 September, 2018, 19:27 | Author: Lawrence Cooper
"We're pushing hard to conclude an agreement that is win, win, win - a modern and progressive agreement that is in line with our values and our ambitions and that will benefit not only Canadian businesses but all Canadians", he said. It's not quite clear if Trump was referring to the state of the negotiating process or to the flow of imports and exports among these countries.
New auto prices are going to rise for additional reasons as well, Krebs noted, such as costs related to aluminum and steel tariffs they've absorbed. If the parties agree to continue with no changes, it will be renewed for another 16 years.
The Mexico-U.S. discussions focused on crafting new rules for the automotive industry, which Trump has put at the heart of his drive to rework the pact he has repeatedly described as a "disaster" for American workers.
The U.S. president has warned he could try to proceed with a deal with Mexico alone and levy tariffs on Canadian-made cars if Ottawa does not come on board, although U.S. lawmakers have said ratifying a bilateral deal would not be easy.
"We had a NAFTA agreement that had gotten seriously out of whack, that led to large trade deficits and needed updating", Lighthizer said.
But any agreement "will hinge on whether or not there is ultimately a good deal for Canada", Trudeau said at a student rally in northern Ontario. American negotiators know what Canada has already done on dairy in past trade deals: it gave the European countries greater access to the protected market in the Canada-EU trade deal, and it was willing to the do the same in the Trans-Pacific Partnership. "It's important for them to get this deal and it's important for us to get this deal".
Trudeau's office sent out a signal later Wednesday that NAFTA 2.0 talks were progressing.
Republicans also face mid-term elections in November and Prime Minister Justin Trudeau a national one expected by October 2019.
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Following another face-to-face meeting with US Trade Representative Robert Lighthizer, Freeland said she remains "optimistic" the sides can bridge their differences by Friday.
We just reached a trade understanding with the United States, and the outlook for the relationship between our two countries is very positive. "But in any event, things are working out very well".
The U.S. president also noted it would be a bad idea for Canada to let this opportunity to join the U.S. -Mexican trade agreement slip away. "I am not concerned right now for Canada's position", Bruce Heyman, a USA ambassador to Canada under Barack Obama, told BNN Bloomberg television.
But she also cautioned that more tough talks lie ahead.
Freeland declined to get into specifics on what issues remained, saying she and Lighthizer agreed not to discuss the details in public.
However, Freeland did suggest Canada has not budged on its insistence that a new NAFTA must include an independent dispute settlement mechanism.
Canada has been absent from the NAFTA bargaining table since trilateral talks paused last spring. She and U.S. Trade Representative Robert Lighthizer had agreed to review progress early on August 30.
The Trump administration said the deal improves labor provisions, in part by requiring 40 percent to 45 percent of auto content to be made by workers earning at least $16 per hour - a salary that could remove incentives for automakers to move jobs to Mexico.
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He said the data sources used by George Washington also are better, "but its accuracy is not as great as they advertise". He said financial instability and a fragile infrastructure made Puerto Rico especially vulnerable to such calamities.
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NAFTA successor deal makes USA bottom line clearer
Perhaps most significantly, much of the auto production would have to be done by people earning at least $16 per hour. It would also be a big win for Mr Trump if he could have a deal ready to go before Americans head to the polls.