Is Trump's rewrite of NAFTA hurting a partnership?

Is Trump's rewrite of NAFTA hurting a partnership?

Despite Trump's tough talk, that United States negotiators have made a decision to keep negotiating is due primarily to the fact that Congress has underlined that any revised deal must include both Canada and Mexico, The NYT noted.

The United States and Canada have made progress in talks to revise the North American Free Trade Agreement, and officials from the two sides will work together into the night to flesh out areas for further discussion, Canadian Foreign Minister Chrystia Freeland said on Wednesday.

NPR: "Why The Auto Industry Is Paying Special Attention To NAFTA Negotiations" - "U.S. and Canadian trade negotiators are scrambling today to come to a compromise on a new NAFTA deal".

On Thursday afternoon, Freeland described the atmosphere as "constructive" and "positive". As long as other countries levy tariffs on USA produced goods, we must also have the ability to do the same to ensure fairness to American companies and workers.

"A depends on the seriousness of Canada in resolving these final disputes", Brady told reporters after meeting with United States Trade Representative Robert Lighthizer who is conducting the talks with Freeland.

But on the sidelines, President Trump and Prime Minister Justin Trudeau have dug into seemingly irreconcilable positions. Without Canada, Republican lawmakers would be likely to scuttle any new NAFTA pact, The NYT report said. The president also said the US would be fine if a deal can't be reached with its northern neighbour. A public comment period wraps up Thursday and people familiar with the White House deliberations last week said the US president is eager to move soon after that.

President Donald Trump may be insisting that the USA will be "better off" without a North American free trade deal that includes Canada, but American unions do not agree-and neither does the tech industry.

"We see there is a tendency to exploit short term emotions as a way of getting that capacity to govern".

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Lighthizer also said American broadcasters operating in border states have also complained about Canadian counterparts picking up the US signals and redistributing in Canada without consent.

"We will not sign a deal that is bad for Canadians and, quite frankly, not having a Chapter 19 to ensure that the rules are followed would be bad for Canadians".

Even the 25 per cent auto tariffs threatened by Trump (for reasons of national security) are just as likely to go ahead with a new NAFTA deal as without it, just as the USA national security steel and aluminium tariffs occurred under NAFTA.

Trump boasted about taking a hard line with Canada at the negotiating table, and has since threatened to cut America's northern neighbor out of a deal if it didn't cave to his demands. It led to lower tariffs on most goods and services traded among the countries, helped mesh their economies closer together, and nudged big business to reorganise supply chains around the North American continent, making industries such as automobiles globally more competitive.

The US and Canada have been unable to agree on several issues, including barriers that Ottawa places on the import of dairy, Canadian rules on movies, books and other media, and on the mechanism to settle trade disputes, The New York Times has reported, quoting sources.

The Trump administration last week reached a tentative deal with Mexico that updates the quarter-century-old NAFTA by incorporating labor and environmental chapters as well as intellectual property protections that were not part of the original pact.

The overall goal is to reach a deal by December 1 so Congress can give its approval to a new NAFTA before Mexico's new president takes office.

Trudeau said Tuesday he would refuse to sign a new NAFTA unless it preserved the exemptions that have protected Canada's cultural sectors, including broadcasting, publishing and music, for decades.

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