Canada has to wait to re-enter NAFTA talks says Trump

13 August, 2018, 23:25 | Author: Trevor Moore
  • NAFTA talks with Mexico drag on due to autos sticking points - Autoblog

President Obrador, Mexico's 1st left-wing president in recent times, won't take office until 1 December, and he is believed to be keen for the transitional government to clinch a deal with the U.S. before then so his party can maintain some distance from a revamped agreement.

Ultimately, the degree of integration in NAFTA might make US tariffs against the Mexican and Canadian auto sectors more trouble than they're worth. There have been warnings Canada could be put in a position where it might have to accept a deal reached between the US and Mexico.

Trump slapped Canada and other allies with steel and aluminum duties, which led to retaliatory levies from Ottawa. "Autoworkers and farmers must be taken care of or there will be no deal", President Trump tweeted, adding that incoming Mexican President Andres Manuel Lopez Obrador "has been an absolute gentleman". In a tweet last night trump said "Tariffs and trade barriers are far too high". One-on-one talks between the US and Mexico are set to continue next week, longer than initially anticipated. "And in June, Trump called Prime Minister Justin Trudeau very dishonest and weak" shortly after he left the G7 meeting in Quebec.

Earlier Friday, a source familiar with Ottawa's NAFTA effort said Canadian negotiators would not be returning to the bargaining table in Washington until the US and Mexico find common ground on their outstanding issues, especially the complex sticking points around the auto sector.

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A government official speaking on background tells CTV News that the ongoing three-way negotiation will continue after the current U.S. -Mexico meetings conclude, potentially as early as next week. The level of confrontation in the pair's auto negotiations has decreased since Washington dropped a demand for a US content requirement, but Ottawa is gearing up for more contentious fights.

Of course, the trade talks are only bilateral at this time because Canada is not included in the talks between the USA and Mexico. (These are a relatively small percentage of total USA auto imports.) But if the United States' immediate neighbors can rest relatively easily, South Korea, Japan and the European Union all face sleepless nights ahead.

"Our focus is unchanged, ' Canada responded with a statement Friday".

While a quick, three-way Nafta deal is still possible if all nations show flexibility, Canada still opposes U.S. proposals for a sunset clause on the agreement and wants an independent dispute-resolution process, he said.

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