Published: Sat, March 10, 2018
Sport | By Floyd Cook

Mexico Economy Minister: NAFTA Must Remain Trilateral Accord

Mexico Economy Minister: NAFTA Must Remain Trilateral Accord

Canada, the United States and Mexico have been carrying out intense negotiations to redraft NAFTA since August 2017 after U.S. President Donald Trump said the deal has been unfair to the United States.

Though Trump says he's trying to protect us against China, he failed to recognize that TPP was actually created to help us compete against China, which is not a member. "It must be that way". Bloomberg reports that Lighthizer said the US may take a pause in negotiations for the Mexican election in July, if no deal is reached in the near term.

White House trade adviser Peter Navarro said in a TV interview Wednesday night that Mexico and Canada would be exempt from the tariffs, reinforcing the possible exemption that press secretary Sarah Sanders had mentioned at the White House briefing in the afternoon.

Mr Trump last Thursday surprised much of Washington - and his own staff - by announcing that he would impose a 25 per cent tariff on steel and a 10 per cent tariff on aluminium.

After days of drama and a last-minute diplomatic scramble, the White House is now hinting that the impending tariff announcement might have some particular exceptions based on national-security considerations for the USA neighbours. "Our objective is to make sure USA companies and workers are treated fairly".

Trump had originally said that the tariffs would be applied equally, with no exceptions for allies. Canada would be particularly hard hit as the largest foreign supplier to the USA of both metals.

The looming departure of Cohn, a former Goldman Sachs executive who has opposed the promised tariffs, set off anxiety among business leaders and investors anxious about a potential trade war.

Efforts by Trump and USA trade negotiators to link the NAFTA talks to the duties have received short shrift from Ottawa and Mexico City.

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Mexico and Canada have been looking elsewhere for economic relationships, and they're finding them.

Lighthizer said that the upcoming Mexican presidential elections, U.S. mid-term elections, and polls in Canada's Ontario and Quebec povinces were complicating matters.

President Donald Trump has moved ahead with steep tariffs on steel and aluminum, upsetting many of America's biggest trading partners. Total trade between the countries reached $636 billion a year ago, according to U.S. government data.

"There's many discussions on this going on in the United States right now". The Canadian dollar and Mexican peso gained against the USA dollar.

Northam said that since NAFTA was enacted, Virginia forestry and agriculture exports to Canada have grown by 475 percent, while exports to Mexico have grown by more than 1,300 percent.

"There's a fear out there that any kind of a potential trade war retaliation could really blunt the positive effects with the economy from the Tax Cuts and Jobs Act", Young said.

The integration between both sides of the border goes back to the auto pact, signed even before the North American Free Trade Agreement, that acknowledged the United States needed Canadian parts to make cars, and vice versa.

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