Texas oil companies tell Trump to leave NAFTA alone
- Author: Jon Douglas Feb 05, 2018,
Feb 05, 2018, 5:25
Reuters quoted Mexico as saying that it was open to changes to rules of origin for automobiles, one of the most contentious issues negotiators face in modernizing the 1994 North American Free Trade Agreement.
The sixth negotiating round was a "watershed" moment for NAFTA renegotiations, particularly after tense negotiations in the previous two rounds that appeared to suggest that the parties were at a stalemate. We sincerely think a trade relationship is a win-win.
But is the name really the problem?
The letter also notes that "a wide range of industries in the US have benefited from this agreement and American consumers are reaping those benefits, too". President Trump has also shown a willingness to negotiate past March and into the summer of 2018, noting that the Mexican election in July will likely make completing a deal before then hard.
A Global News story paints even a glimmer picture.
U.S. Secretary of State Rex Tillerson landed in Mexico City on Thursday afternoon and was due to have dinner with Videgaray and other senior Mexican government and national security officials at U.S. Ambassador Roberta Jacobson's residence. The one thing that has accomplished the most for free and fair trade in apples, and most of agriculture, is the North American Free Trade Agreement (NAFTA). "We've pushed our American partners on this and they understand that right now", he said. "He lives by domination and he lives to destroy".
These efficiency losses and trade shifts would have an impact on USA production of both goods and services, and thus also on US employment. He believes the deal still has a chance no matter what they call it.
Lighthizer said trilateral negotiations are more "complicated and contentious" than bilateral talks.
In regard to rules of origin for automobiles and auto parts, Canada made a proposal to counter the USA proposal of increasing the origin requirement for vehicles to 85% NAFTA-based content and 50% US -based content Canada's proposal provided for a credit based on investment in the NAFTA region related to research and development and manufacturing with NAFTA-origin steel and aluminum.
Just hearing that has to raise some alarm bells.
"We don't view the Trudeau comments as anything more than him stating that Canada wouldn't sign just any deal", said Bipan Rai, a Toronto-based foreign-exchange and macro strategist at Canadian Imperial Bank of Commerce.
"We aren't going to take any old deal", Trudeau said Friday at a town hall in Nanaimo, British Columbia.
During the joint news conference, Lighthizer said Canada has an $87 billion surplus with the U.S; $46 billion when energy is removed. It served notice that whatever Trump's message is on trade, many in his party will not stand with him if he makes good on his threats to withdraw from the accord between the U.S., Canada and Mexico.
Foreign purchasers would shift away from USA goods and services in favor of lower-cost goods and services made in other worldwide markets, particularly those made in Asia. "To say 'It's the fault of that immigrant who speaks a different language and looks different from you, ' or 'It's the fault of that bad trade deal and that bad country that's taking advantage of us'". The sixth round of the renegotiation talks ended on Monday in Montreal, Canada, as the United States asked for the process to be accelerated.