Like an elegant boxing match, NAFTA negotiations have been a bitter battle going back and forth between the three nations of the North American Continent. President Trump has threatened time and again to end the deal if America is not given respect. The negotiations are hearing the last bell as talks hit the sixth round.
Their last chance to meet a compromise, Canada has begun looking for new partners. Currently, 75% of their exports are sent to the United States. Mexico, who still refuses to pay for the wall, has shown signs of considering concessions. Needing the trade deal to continue, the two nations rely heavily on the United States and the important trade deal.
On Tuesday the North American Trade Deal Agreement (NAFTA) went into a key round of negotiations. The Canadian negotiator as well as President Trump both mentioned the talks are advancing optimistically. The happy remarks from the two northern countries resulted in the peso (MXN) to drop a few points compared to the other nation’s currencies.
The small impact shows how closely the economies of the three nations are tied. The original NAFTA agreement was signed in 1994 and President Trump has threatened to leave the deal multiple times during his presidency.
Calling NAFTA a disaster of a trade deal, the president asserts the agreement treats the United States very unfairly. After signing tariffs on imported solar panels and washing machines, the president said the talks to renegotiate the agreement are moving along very well and if they do not bear fruit, he will leave the deal.
Teams met to speak about the deal in Montreal on Tuesday for the for their 6th and final round of talks for negotiations. Scheduled to end in March, the Mexican elections should hold no bearing on the negotiations of the trade deal.
Canadian and Mexican negotiators have announced they are prepared to be flexible when it comes to trade with the United States. Recognizing an unquestionable deficit, the two countries are willing to discuss the manufacture of vehicles to help make the U.S. qualify for duty-free status.
The proposal that 50% of the content inside the vehicle should be manufactured in the United States has been denied previously by the Canadian and Mexican negotiators. Under current rules, a car must be comprised of 65% North American products in order to avoid tariffs. The Washington delegation asserts the number should increase to 85%. This would increase the cost of cars made primarily outside The United States, Canada, or Mexico.
Claiming they have a lot of ideas and creative strategies, the Canadian team has high hopes for progress. The delegation from Mexico has asked to find solutions on food safety, telecommunications, and anti-corruption.
Although Congress has not submitted a clear proposal for Washington’s stance on the trade deal, the team from the United States are pushing to perform the president’s agenda of America first. The broker believes it very unlikely the U.S. will abandon the trade deal.
Some Canadian officials have expressed some pessimism over Washington’s abstinent view on some of the renegotiating terms. One Canadian confessed he was feeling pressured to capitulate to Washington’s demands and hoped he would not have to walk away from such a treatise. The team from the North admitted it can be hard to create terms without knowing what the other side wants.
Canada currently sends a total of 75% of their national exports to the United States and relies heavily on trade partnership. Desperate for a trade partner, Canada signed reworked Trans-Pacific Partnership (TPP) early on Tuesday. Ten other nations have come together with Canada to ensure the global trade agreement continues forward after President Trump vetoed the agreement soon after his inauguration.
The Prime Minister of Canada is in Davos at the World Economic Forum meeting with other world leaders and international businessmen. In hopes of selling his country, Justin Trudeau wants to invite new investors and address trade opportunities in Canada. Next month, Trudeau will be visiting India. A huge potential trade partner, Canada hopes to court Indian officials. India is one of the largest markets and has a burgeoning industry.
President Trump and his America first agenda has continued to change the way business is done. His art of the deal technique forces his opponents to concede their points before demands are even made. A brilliant strategist and a true patriot, the president fights tooth and nail for the people of America every day.