World

NAFTA: "We are ready to all" - Justin Trudeau

NAFTA:

"With an agreement, in 10 years I see a strong region that can face Asia or China, without an agreement I see a weaker region in the medium and long term".

"He views it as a violation of USA sovereignty", she added.

Gary Hufbauer, senior fellow at the Peterson Institute for International Trade, says Trump "very likely" has the legal authority to withdraw from NAFTA on his own if talks collapse.

Trump added that a "very creative" deal was still possible to benefit all three countries.

Still, to this day, President Trump has seemed more interested in placing "poison pills" and renewing reckless threats to withdraw entirely from this mutually beneficial trade agreement, rather than working with our global allies and neighbors to find solutions that directly aids American production and labor.

Trump has been calling into question the very existence of NAFTA. But what he wants — from requiring that more auto production be made-in-America to shifting more government contracts to USA companies — will likely be unacceptable to America's two NAFTA partners, Mexico and Canada. We must stop allowing companies to abuse their workers to gain a competitive edge.

NAFTA negotiators face tough new US demands to increase regional content for autos to 85 percent from 62.5 percent, with 50 percent from the United States, according to people briefed on the plan. He added that a multi-party deal like NAFTA offers benefits that bilateral pacts can't, pointing to the current Bombardier-Boeing dispute as one example.

Trudeau said he "highlighted to the president how much we disagree vehemently" on the decision to impose anti-dumping duties.




But there is still some uncertainty whether Trump is deploying tough negotiating bluster or is seriously considering scuppering the agreement. American Express, AT&T, GM and Delta were listed on publicity material for an event hosted by the U.S. Chamber of Commerce in Mexico on Tuesday, where Donohue warned that several U.S. proposals in the NAFTA talks were "poison pills" that risked dooming the agreement.

"There's been huge investments in Canada, the USA and Mexico, that are long-term assets", said Don Walker, chief executive officer of Magna International Inc. a Canada-based parts maker with more than 25,000 employees in the U.S.

Under current rules, at least 62% of the parts in a vehicle sold in North America must come from the region to avoid being hit with taxes at the border. The president of the United States was threatened in the early afternoon, and in front of the prime minister, to terminate the agreement. Scheduled talks in this session have been extended by two days to Tuesday.

One of the most contentious USA proposals is around so-called rules of origin for vehicles, which govern what share of a auto must be built within NAFTA countries to receive the pact's benefits.

The auto parts study was conducted before these targets were revealed.

Despite their common ground, however, Canada and Mexico are also at odds on some key issues.

U.S. Trade Representative Robert Lighthizer said on Wednesday the three nations had completed their negotiations on company competition policy, reaching an agreement that goes beyond previous U.S. trade deals to ensure "certain rights and transparency under each nation's competition laws".