Trump increases pressure on Mexico and Canada to sign NAFTA

Ajustar Comentario Impresión

Canada is the largest supplier of both metals to the United States. Some win while others lose, and given the economics of our country, Canada can not win many trade wars, especially not with the United States.

Since the United States announced its intent to renegotiate NAFTA in May 2017, several rounds of highly-publicized negotiations have been held in Canada, the USA, and Mexico. "Once you start using national security for import protection, then what's to stop countries from saying, 'Well food security is national security, ' for them and they need to make themselves more self-sufficient".

The only two countries escaping tariffs were America's neighbours: Canada and Mexico.

Guajardo said Mexico was willing to spend "as much time as necessary" to resolve NAFTA negotiations successfully.

That the USA hasn't ditched NAFTA as candidate Trump threatened is the smallest of concessions.

The stated reason for the hurry now is simple: It's the USA argument that political events beyond the spring could make it harder to finish a deal and get final ratification votes.

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

Trump's call for tariffs on steel and aluminum imports has prompted an outcry not just from trading partners but also from within his administration and the Republican Party over concerns they will spark a global trade war. The New Zealand dollar was up as much as 1.2 percent on the day and the Australian dollar was up more than 1 percent.

By weakening NAFTA and imposing new tariffs on critical imports, President Trump would threaten the well-being of the very workers and communities that supported him most.

Events Monday raised the prospect of a pressure-cooker of a negotiation over the coming months, with the twin ingredients of a tariff fight and trade talks being potentially tossed together into one sizzling political stew. "Mexico does have other options".

The United States has a trade deficit of "800,000 million dollars, we have been scammed all over the world, by friends and enemies", he said, to point out a deficit of "500,000 million dollars" with China. US chemical exports to Canada and Mexico have grown from $13 billion in 1994 to $44 billion in 2018, the report says.

Senate Majority Leader Mitch McConnell (R-KY) speaks after the Senate Republican weekly policy luncheon on Capitol Hill in Washington, U.S., March 6, 2018.

But Trump's continual bashing of NAFTA has forced Mexicans to play defense.

In B.C., it's unsure at this point how the proposed US government's 10 per cent tariff on aluminium imported into the USA would impact Rio Tinto's BC Works in Kitimat.

David and Goliath? Sure; there are 10 times as many Americans as Canadians.

The U.S. shouldn't cling to expensive, outdated ways of producing things. As Adam Smith figured out more than 200 years ago, trade is always good because it's voluntary.

"We lose United States dollars 800 billion a year in trade". Canadian farmers see America's retreat from TPP as an advantage and are expanding exports to Asia.

NAFTA - which went into effect in 1994 and is now being renegotiated by U.S. Trade Representative (USTR) Robert Lighthizer - eliminated most tariffs on trade between the U.S., Canada, and Mexico. His threats to deport immigrants brought to this country illegally as children can not possibly be helping. And, who knows? If Trump has his way, it may lead to some more trade deals with other countries. Beijing counterpunched: It imposed a tax of up to 105 percent on US chicken feet - a throw-away item in the USA that's considered a delicacy in China. It would be China. The U.S. would effectively forfeit its North American market position to China.

Froma Harrop is a columnist with Creators Syndicate.

Comentarios