Ending NAFTA could cost United States 50000 auto parts jobs
- Author: Rogelio Becker Oct 13, 2017,
Oct 13, 2017, 0:07
He was speaking at the White House with Canadian Prime Minister Justin Trudeau, who said Canada was "braced" for Trump's unpredictability but taking a serious approach to the NAFTA talks.
Asked during his appearance with Trudeau whether NAFTA was dead, Trump said, "We'll see what happens".
Business leaders attending a U.S. -Mexico CEO conference said that no North American Free Trade Agreement would be better than a bad deal, as industry braces for the end of a treaty that drives $1 trillion in annual trade.
United States proposals include limiting the number of federal government contracts that Mexican and Canadian companies can win, a provision that would cause the deal to automatically expire in five years unless all three countries vote to renew, and changes in how much of a product needs to be made in North America to come under Nafta protections.
Videgaray said leaving NAFTA would increase tariffs by an average of about 3.5% for the 44% of Mexican exports that use NAFTA trade preferences.
"It's possible we won't be able to make a deal, and it's possible that we will", he said.
"I highlighted to the president how we disagreed, vehemently, with Commerce's decision to bring in countervailing and anti-dumping duties against Bombardier", Trudeau told reporters following talks with US President Donald Trump.
If the North American Free Trade Agreement survives the renegotiation effort, The United Kingdom may be interested in joining the pact. Mexico strongly opposes such a move, which would damage its own vehicle industry.
"There are several poison pill proposals still on the table that could doom the entire deal".
Rep. Richard Neal of MA, the ranking Democrat on the committee, said he hopes NAFTA will expand Canadian market access for USA cultural industries and "will be an opportunity to update intellectual property rules". The U.S.is expected to propose substantially raising the regional requirement, from 62.5 percent now, and potentially add a U.S. -specific content requirement. Scheduled talks in this session have been extended by two days to Tuesday.
According to a schedule seen by Reuters, meetings on government procurement, cross-border services trade, environmental issues and state-owned enterprises were set to conclude for the current round on Thursday. -Mexican relations and affect bilateral cooperation in non-trade areas.
"If the required content to hit the threshold for a NAFTA vehicle is too high, people may say, 'Look, it's just too hard, it's too high, so we'll just ship the vehicles in, '" Magna International Inc.
"There's a path to be optimistic", he said. The question now becomes are we going to be the country that leads this shift?
Trudeau's visit to Mexico is his first official sojourn to the country and follows Pena Nieto's visit to Canada in June 2016.