Trump's words hang over NAFTA table as United States business frets

13 October, 2017, 00:40 | Author: Irene Delgado
  • USA Trump und Trudeau im Weißen Haus | NAFTA

In his meeting with Trump, Trudeau was expected to remind the president that Canada is the United States' biggest export customer, with largely balanced two-way goods and services trade, and is not the cause of US manufacturing jobs lost under NAFTA, Canadian officials said.

"While NAFTA modernization is important, we urge caution in considering the jobs that might be lost and the prices American consumers may incur as the result of changes to key aspects of the agreement", said AIADA President Cody Lusk in a statement. This week the influential US Chamber of Commerce warned it was time to "ring alarm bells" over the NAFTA talks.

US President Trump has warned that tough talks lie ahead on the future of NAFTA, indicating that the US could withdraw.

"It's a source of total uncertainty", said one of the NAFTA government officials familiar with details of the negotiations. Trudeau has said he is optimistic about the deal's fate but admitted there was room for improvement.

Trudeau will travel to Mexico on Thursday to hold additional NAFTA talks with his Mexican counterpart, Enrique Pena Nieto. Replying to a question, Trump said he would consider a trade pact with Canada minus Mexico, adding that both the USA and Canada wanted to protect their workers.

The US president said if there was no deal on the NAFTA, it would be terminated. Both leaders are keen to see talks succeed.

Trump, who made trade a key part of his 2016 presidential campaign, has repeatedly criticized Canada, alleging that it unfairly blocks US dairy products and subsidizes its softwood lumber industry.

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Trudeau told reporters in Washington DC that he agreed with the USA president that that the NAFTA trade deal needed to be revamped and that any new agreement needed to "give citizens opportunities to succeed".

"U.S. negotiators have made conditions so tough that Mexico and Canada could reject them, which would be the ideal excuse for the US government to announce its departure from NAFTA", Coutino wrote.

The United States is pushing for automobiles to include more US -made parts as well as more content from Canada and Mexico overall. US negotiators have countered with a proposal that would effectively grant the other countries less access, people familiar with the talks say.

The rules of origin demands are among several conditions that the U.S. Chamber of Commerce has labeled "poison pill proposals" that threaten to torpedo the talks.

On automotive rules of origin, NAFTA negotiators face tough new US demands to increase regional vehicle content to 85 percent from 62.5 percent, with 50 percent required from the United States, according to people briefed on the plan.

Ottawa and Bombardier in turn accused Boeing of manipulating the US Trade Remedy System to try to stop a rival from selling on the US aviation market.

Americans", she said, and acknowledged that changes to the deal would "of course be opposed by entrenched Washington lobbyists and trade associations.

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