Posts tagged with "NAFTA"

Three cheers: USA, Canada, Mexico support new trade deal

October 2, 2018

The United States. and Canada have agreed on a deal to restore the 24-year-old North American Free Trade Agreement (NAFTA) to its traditional structure as a trilateral bloc, Bloomberg reports.

U.S. and Canadian negotiators negotiated around-the-clock over the past weekend, September 29-30, to make a Sunday deadline that would allow the countries to sign the deal as their final act before Mexico’s outgoing President Enrique Pena Nieto leaves office at the end of November.

The new deal will be called the United States-Mexico-Canada Agreement (USMCA), according to a joint statement by  Foreign Affairs Minister Chrystia Freeland and U.S. Trade Representative Robert Lighthizer that was issued late Sunday night.

“USMCA will give our workers, farmers, ranchers, and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home,” the statement said.

According to a report by Reuters, Canada has agreed to provide U.S. dairy farmers access to about 3.5% of its $16 billion annual domestic dairy market. Although Canadian sources said its government was prepared to offer compensation, dairy farmers reacted angrily.

“We fail to see how this deal can be good for the 220,000 Canadian families that depend on dairy for their livelihood.” Pierre Lampron, president of Dairy Farmers of Canada, said in a statement.

“This has happened, despite assurances that our government would not sign a bad deal for Canadians.”

The deal also requires a higher proportion of the parts in a car to be made in areas of North America, paying at least $16 an hour, a rule aimed at shifting jobs from Mexico.

The new deal will need the approval of Congress, and it is not likely to reach a floor vote until the next session of Congress in 2019. The top Democrat in the House was not endorsing the deal just yet.

Democrats will closely scrutinize the text of the Trump Administration’s NAFTA proposal, and look forward to further analyses and conversations with stakeholders,” House Minority Leader Nancy Pelosi said in a statement.

With control of both the House and Senate at stake in November, it is unclear if Congress will support the deal, ABC News reported.

However, Trump was optimistic, telling reporters he thinks it will pass “easily.”

Research contact: @jendeben

Trump continues to ostracize Canada in trade talks

August 28, 2018

Just months after President Donald Trump said he would withdraw from the North American Free Trade Agreement (NAFTA)—which had progressively eliminated tariffs between the United States, Mexico, and Canada since 1994—progress has been announced toward a new deal.

According to an August 26 report by Bloomberg, the POTUS still is threatening to leave NAFTA in the dust—saying on Monday that he would create a trade accord with Mexico that would eliminate Canada from the bloc.

Such a new pact would need to be approved by Congress before it could become effective—and that is unlikely. Although Canada has not been a party to recent talks, the potential for a two-country deal appears small, given opposition by Mexico, American lawmakers and North American industries whose supply chains rely on all three countries, the news outlet reported.

Trump announced the agreement with Mexico in a hastily arranged Oval Office event on August 27, Stars and Stripes said, piggybacking on the Bloomberg report, with Mexican President Enrique Pena Nieto joining by conference call.

According to the military news outlet, Pena Nieto said he is “quite hopeful” Canada would soon be incorporated in the revised agreement, while Trump said that remains to be seen.

The agreement with Mexico centers on rules governing the automobile industry, resolving a big source of friction, but leaves aside other contentious issues that affect all three countries.

Early on Monday morning, Trump tweeted, “A big deal looking good with Mexico!”

America’s trade relations with Canada have deteriorated in recent months, as President Trump has repeatedly carped on the country’s trade practices and Canadian leaders have insisted they will not rush to sign a deal that does not work in their favor.

On August 24, Canadian Foreign Minister Chrystia Freeland said that Canada would be “happy” to rejoin the talks once the United States and Mexico had made progress on their specific issues. “Once the bilateral issues get resolved, Canada will be joining the talks to work on both bilateral issues and our trilateral issues,” Freeland said.

Trump has continued to inject uncertainty into the NAFTA talks, believing that the strategy gives his advisers an advantage at the negotiating table, the news outlets said. He has hit Canada and Mexico with hefty tariffs on their shipments of steel and aluminum and threatened further taxes on their cars.

Research contact: @EMPosts 

Trump imposes steel, aluminum tariffs on EU, Canada and Mexico

June 1, 2018

The Trump administration will levy onerous steel and aluminum tariffs on its close allies—the European Union, Canada and Mexico—starting today, in a move likely to lead to retaliation and risk the future of the North American Free Trade Agreement (NAFTA), The Hill reported.

U.S. Commerce Secretary Wilbur Ross said in a conference call with the media on May 31 that—following months of entreaties from the three trading partners—the president had decided to end temporary exemptions.

This is not a step that the American public support, based on results of a recent Quinnipiac Poll. U.S. voters oppose (50% to 31%) tariffs on steel and aluminum, and disagree (64% to 28%) with President Donald Trump’s claim that a trade war would be good for the U.S. and easily won, the researchers found.

Every listed party, gender, education, age and racial group opposes steel and aluminum tariffs, except for the Republicans, who support tariffs by a lackluster 58% to 20%; and white voters with no college degree, who are divided (42% to 40%).

American voters oppose these tariffs (59 % to 29%), Quinnipiac found, if these tariffs raise the cost of the goods they buy. Indeed,American voters disapprove (54% to 34%) of the way in which the POTUS is handling trade.

Ross said on Thursday, “We look forward to continued negotiations with Canada and Mexico on one hand; and with the European Commission on the other hand, as there are other issues we need to get resolved.”

The Commerce Secretary noted that the Trump administration would need to see the reactions of Canada, Mexico and the 28-nation EU bloc before determining what to do next.

But, The Hill reported, he said that U.S. officials are “quite willing and eager” to have further discussions with all of the parties.

The trading partners all had warned America that they intended to impose retaliatory tariffs on U.S. exports, if President Trump made this move.

According to The Hill, the EU is expected to quickly retaliate with promised tariffs of about $3.3 billion on iconic American products such as bourbon, jeans and motorcycles.

Last year, nearly 50% of U.S. steel and aluminum imports came from the EU, Canada and Mexico. Trump first announced tariffs of 25% on steel and 10% on aluminum for national security reasons in March.

Canada and Mexico also have said that tariffs are unacceptable, don’t affect U.S. national security and that their implementation could put the fate of NAFTA at stake.

Research contact: peter.brown@quinnipiac.edu

73% of Americans want NAFTA to add protections for intellectual property

January 24, 2018

Nearly three out of four U.S. voters  (73%) believe that the North Amertican Free Trade Agreement (NAFTA) should be revised and updated to better protect and value U.S. inventions and creativity; based on findings of a poll released on January 23 by ACTION for Trade, a coalition of trade associations, technology companies and creative houses

The NAFTA agreement established a free-trade zone in North America. It was signed in 1992 by Canada, Mexico, and the United States and took effect on January 1, 1994.

The new poll of 1,986 U.S. adults comes as a round of NAFTA talks began yesterday in Montréal, scheduled to run through January 29.

Among the other key findings: Nearly 90% of Americans say that continued innovation is important to ensuring U.S. competitiveness; as well as job creation (91%), economic growth (91%) and the development of new medicines and treatments (89%).

Research contact: 189182@email4pr.com