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Have NAFTA Talks Reached A Breaking Point?

Posted December 01, 2017

Under Economic Issues, International Trade Issues

(Nathaniel Parish Flannery – Forbes)

As efforts re-negotiate the North American Free Trade Agreement (NAFTA) continue, the U.S. team continues to push a hardline stance that the governments of Canada and Mexico aren’t going to accept. Right now it seems like very little progress is being made. On November 29 Mexico’s Minister of Economy Ildefonso Guajardo exited a meeting with Trump’s team in Washington with a negative outlook. “I was clear that the domestic content [proposal] is something that is not viable at this point,” Guajardo said.

The U.S. appears to be adamant that it will squeeze concessions out of Mexico and Canada and deliver a win for Donald Trump’s administration. So far Trump’s team is ignoring criticism from business groups in the U.S. that have warned about the potentially disastrous consequences of the U.S.’s current proposals. [...]

Representatives from Canada and Mexico, however, aren’t yet willing to seriously discuss the U.S.’s controversial proposals for new rules for increasing the U.S. content on cars produced under the NAFTA framework or a so-called sunset provision that would require the three countries to re-affirm their commitment to NAFTA every five years. One Canadian official explained, “On the controversial proposals, we cannot really negotiate as there seems to be little room to do so and little logic to the proposals.” Click here to read more.