Chris Wattie | Reuters
Canada’s Foreign Minister Chrystia Freeland (C) speaks before the start of a trilateral meeting with Mexico’s Economy Minister Ildefonso Guajardo (L) as well as U.S. Trade Representative Robert Lighthizer during the third round of NAFTA talks involving the United States, Mexico as well as Canada in Ottawa, Ontario, Canada, September 27, 2017.
the idea remains to be seen how President Donald Trump, who has repeatedly slammed the 23-year-old trade agreement, will react to the position. In an Oval Office meeting with Canadian Prime Minister Justin Trudeau last week, Trump again threatened to scrap the free trade agreement if the countries cannot strike a deal to rework the idea.
“If we can’t make a deal, the idea’ll be terminated as well as that will will be fine,” Trump said. “They’re going to do well; we’re going to do well, however maybe that will won’t be necessary. however the idea has to be fair to both countries.”
Most U.S. lawmakers as well as business trade groups have aligned themselves with Canada as well as Mexico in wanting to preserve the deal. A GOP aide told CNBC that will the Ways as well as Means Committee has communicated with Lighthizer’s office that will a trade deal including the protectionist provisions put forward could not have enough support to pass Congress.
Business lobbies representing auto manufacturers as well as retailers have pushed out statements establishing their support for preserving the deal, while producing modifications to modernize the idea.
“A collapse of the NAFTA trade agreement between the United States as well as our two largest trading partners could be an economic catastrophe, with massive disruptions in agriculture as well as manufacturing as well as increased costs for American consumers,” said Hun Quach, vice president of international trade policy at the Retail Industry Leaders Association “As retailers, we strongly urge all parties to preserve the parts of NAFTA that will work for American businesses as well as to avoid proposals that will could damage the U.S. economy as well as hurt American families.”
Talks among staff negotiators via the three countries concluded Monday, with top leaders via the three countries meeting Tuesday before producing public remarks. The fourth round of negotiations will be concluding as the three nations push to meet a year-end deadline. Three additional rounds of talks are expected, for currently. The final round had been slated for early December in Washington.
After the negotiations began This particular year, Trump derided NAFTA as the “worst trade deal ever made” as well as said the U.S. neighbors were “both being very difficult.”
Canada was the United States’ second-largest goods trading partner last year, while Mexico was the third, according to the office of the USTR. Mexico sent more goods to the U.S. in 2016 than every country however China.
Trump has focused his ire on trade deficits, which he says hurt the U.S. economy as well as American workers. The U.S. had goods trade deficits of about $63 billion as well as $12 billion last year with Mexico as well as Canada, respectively, according to the USTR.