NAFTA Negotiations Drag On One Year Later
10
Sponsored Links
It’s been one year since the United States, Canada and Mexico began discussions to renegotiate the 24-year-old North American Free Trade Agreement. And a year later, it’s still unclear what will become of the agreement.
Bloomberg recapped the year-long discussions thus far last Thursday and the three countries allegedly came close to finalizing an agreement this past May. However, a controversial “sunset clause” kept Canada and Mexico away from a final deal. The sunset clause calls for the agreement to terminate unless all countries sign on again in five years.
However, momentum has built once again as Mexico and the U.S. have reportedly reached a stage where both countries agree to current proposals. Canada has reportedly shied away from the current variations. And there’s still a chance the U.S. could negotiate separate agreements with both Mexico and Canada, though both other countries prefer a trilateral agreement still.
For business leaders, and specifically automakers, the talks still keep future product plans on ice. And the threat of the U.S. leaving the agreement altogether is still very real. With mid-term elections quickly approaching, it may also become doubly difficult to have the U.S. Congress ratified a new agreement.
- Sweepstakes Of The Month: Win a 2023 Corvette Z06 Convertible. Details here.
Sponsored Links
Negotiations of this magnitude take time. At least something is being done about it rather having the same old people sitting on their hands and looking the other way as The US gets put over a barrel.
The people that disliked my comment are the same people that are thrilled that of the ~$1 Trillion annual NATO budget, the USA contributes ~$660 billion. The remaining ~$340 billion is split up among the other 28 NATO members.
Seems rational…
Infamous is correct.
The other thing to consider is they need us more than we need them. The longer this goes on the more it plays into our hands.
As a Canadian I beg to differ. The US has a large trade surplus with Canada. And many raw materials used in the US come from Canada that are then manufactured into higher value finished goods in the US to be sold in other global markets. Some may argue that the current trade deal is bad for Canada, and that the US economy to be competitive globally needs fairly barrier free trade with Canada. As for some barriers that Canada does have like dairy. (I mention dairy because this is one of the sore points in the NAFTA negotiations) This is simple. Canada is a northern country with a shorter growing season. This puts us at a competitive disadvantage agriculturally in some sectors. However agriculture is keystone for self dependence. We don’t want to be a country that is dependent on others for a sector as critical as agriculture. This means that Canada needs to put some barriers up to protect these domestic sectors. Not to mention unlike the US Canada does not subsidise it’s dairy industry. So barriers are put up to protect our dairy industry from the heavily subsided, over producing and hormone inflated dairy industry in the US.
NEROMANCERES IS A TYPICAL EXECUSE-MAKING CANADIAN. NEVER HIS FAULT, ALWAYS SOMEONE ELSES ESPECIALLY THOSE FEISTY AMERICANS. I know because I am a CANADIAN and tired of hearing my fellow idiot countrymen whine all the time like a bunch of babies…
1) Shorter growing season??? lol Get out of the stone age and stop relying on farming. You are just feeding the stereotype that all Canadians do is cut trees down, fish and farm. Canadian love to talk about “how smart” they are, but it sure doesn’t show in reality like the economy.
2) Stop lying…NAFTA is about FREE TRADE, period. You agreed to it. Yet we (I am a Canadian that disagrees with you) still apply taxes to American products and do everything we can to make it hard to for Canadians to buy American products on the Internet, etc. We got caught and unlike other weak American Presidents, Trump is actually standing up for his citizens and forcing us to honor the agreement. You are also making up stuff to protect the bloated, government-run and manipulated milk market in Canada that pays money out to wealthy farmers in exchange for votes. Again, FREE TRADE means trading the things you do and make best…Maybe milk is not one of them.
2.5) “Not to mention unlike the US Canada does not subsidise it’s dairy industry.”
FAKE NEWS! CANADA DOES SUBSIDIZE ITS FARMERS THROUGH TAX CREDITS AND PROTECTING THE MARKET FROM “FOREIGN” COMPETITION. Not to mention all the political protection and kickbacks to politicians from those massive milk farmers.
3) “This means that Canada needs to put some barriers up to protect these domestic sectors.”
You just gave Pres. Trump the exact support he needs to defend his farmers and manufacturing, key to American independence! Are you an idiot?! Canada signed on to FREE TRADE, not free when I feel like it trade but FREE TRADE…Suck it up, buttercup and compete. Stop putting up barriers to trade and then attack President Trump for protecting his people and country.
4) You can’t re-write the rules of a game or do a do-over when you think you lost after signing an agreement like FREE TRADE. Are you saying Canadian negotiators are not as smart as Americans
5) Don’t play the . Tons of other small countries in the world that compete with the U.S. that don’t whine about the U.S.
6) NAFTA is being re-written as we speak and now the field will be more fair. Nothing you can do. Facts are facts, and free trade means exactly that – FREE trade, not when you feel like it.
Wish we had a Prime Minister like Trump. But then again, with our idiot PM, it just might happen sooner than later.
I’m not complaining in any way shape or form. In fact I don’t understand your comments or stance at all. I’m simply explaining that these trade issues are complex and there are certain industries that Canada does need to protect. And the US has many industries they too will also protect. Many of them for very good reasons. But fact is Canada does currently have a trade deficit with the US. Canadians buy more products from the USA than the USA buys from Canada. But overall NAFTA has benefited both economies over the years (more pluses than minuses).
I’m not saying Canada is dependent on farming. But we all need to eat. And if there is a global event that creates food shortages and our economy becomes dependent on importing food we get hurt. As the exporters will stop exporting. There are certain fundamentals in an economy that require some level of protection. And again every country in the world understands this and trade deals are setup around this.
As for subsidies yes Canada does subsidize certain agricultural sectors (as does everybody in the world). Dairy does not receive any direct subsidies in Canada (but does in the USA). But supply management does generate a guaranteed market for Canadian dairy within Canada. The US is allowed to import dairy into Canada tariff free to a point and then they face tariffs when quota’s are exceeded and presuming that these dairy products meet more stringent Canadian standards. Canadian standards are closer harmonized to European standards and do not allow some of the hormones that are used in US production.
Yes NAFTA is being re-written and I do hope it’s more fair. That will better benefit Canada and the USA in the long run. Trade deals are not about winners and loosers. It’s about growing mutual economies to benefit everyone.
As a Canadian, not necessarily a butthurt jingoistic neo-nationalistic Canadian that never shuts up whining about the superpower to the South, I agree the United States has already won under the strong leadership of President Trump.
1) Remember when Sean tried to exclaim a long time ago how we were nearing a deal and that meant Canada somehow won? Well, it is dragging on so the same logic would say that Canada is NOT winning.
2) More importantly, President Trump and the U.S.A. have already won. Remember when our idiot Prime Minister said NAFTA would never be re-negotiated? Well, it is and changes, not matter how small, will benefit the U.S. U.S.A. 1 – Canada 0.
3) CANADA STANDS TO LOSE THE MOST BECAUSE IT SUCKS THE MOST OUT OF THE U.S. 85%+ of all trade goes to the U.S. Without the U.S., there is no Canada. Americans companies employ the most Canadians…pay the most taxes that in turn fund our failing healthcare system…And the products coming from the U.S. into Canada are mostly things that are needed by Canadian companies to operate and complete production. Without them, no production, no money…you get the point.
Not all Canadians are flag-waiving idiots who hate America and can’t stop whining and crying about the U.S. Just look at Ontario, the largest province in Canada and home to Canada’s auto industry. We just voted out the anti-American Liberals in a landslide and voted in a pro-Trump Conservative. So much for the automotive and anti-Trump rhetoric. The Liberal party would lose a national election if called soon.
Again trade deals are not about winning or loosing. If both sides don’t see a benefit than neither side is going to sign on to it.
Yes Canada does have a strong economic tie to the US but that is simply demographics. Canada is a country of 36 million next to a country of 350 million. And it’s the only country with a physical land border to Canada. So of coarse it’s going to play a major role. That being said it used to be 85%. Today it’s down to 70% and it’s falling quickly as Canada has been working to diversify it’s economy for a while now. And with new trade agreements like CETA, TPP and the South Korean Free Trade agreement that trend will continue. But the US will always be a major factor in the Canadian economy.
We don’t need Congress to ratify it. Instead why don’t we just pick 4 random America cities, and have the voters decide. lets see randomly pick 4 American cities. How about Detroit, Hamtramck, Orion Michigan And Lordstown Ohio.
Yes, American cities that were sold out to other countries. And now we have a President is trying to protect them…Manufacturing sentiment and jobs are at an all-time high. And African American voter support has skyrocket for President Trump. Might have something to do with black-owned small businesses up over 400% and the lowest unemployment rate EVER for blacks and Latinos under President Trump.
It’s the economy, stupid!