Published: Thu, October 12, 2017
Worldwide | By Isabel Fisher

U.S. demands raise fears that leaving NAFTA could hurt economy

U.S. demands raise fears that leaving NAFTA could hurt economy

The two leaders met as the fourth round of NAFTA negotiations began just outside Washington, District of Columbia, with trade experts, businesses, labor and lawmakers from all three countries warning of a possible breakdown in the talks.

Victor Herrera, who's spent 35 years covering Latin American financial markets, warns that NAFTA's demise would have major effects. In addition, the United States wants to add a new 50-percent US -specific content requirement, something that was not in the earlier agreements.

The Democrats marshaled their forces as the NAFTA talks resumed across the Potomac River in the D.C. suburb of Alexandria, Va., and as news reports indicate they may break down over the GOP Trump administration's demands for higher USA domestic content in cars, among other issues.

NAFTA negotiators face tough new US demands to increase regional content for autos to 85 percent from 62.5 percent, with 50 percent from the United States, according to people briefed on the plan. "Are they going to be patient and work through these things?" asks Phil Levy, senior fellow at the Chicago Council on Global Affairs. On Monday, U.S. Chamber of Commerce president Tom Donohue, speaking in Mexico City, said it was time to "ring the alarm bells" on NAFTA.

Besides aiming to clinch a USA trade deal or forming some new trade grouping, some British supporters of Brexit have pondered joining an existing trade alliance such as NAFTA.

In an interview with Forbes Magazine, Trump thinks NAFTA will need to be tossed to make it better.

"We don't hope it will, we don't desire that it will, we don't believe that it will, but it is at least a conceptual possibility as we go forward", Ross said. As reported by Associated Press Mr.Trudeau "remained bullish" but was "ready for anything".

That meeting resolved some long-standing disputes between the two countries, including a reopening of Mexico to Canadian beef and a lift of the visa requirement the former Conservative government had imposed on Mexican nationals in response to thousands of asylum claims being lodged by them. It is unclear whether the combined diplomatic power of Harper, Ambrose and Mulroney can turn the tide, but it is heartwarming to see them willing to give it a try. "So we'll see what happens with NAFTA". In 1994, Mexico joined NAFTA and has been a full member of the agreement ever since. This week, his government revealed it would investigate buying surplus fighter jets from Australia rather than complete a contract to buy new fighters from Boeing. Trump left open the possibility that the USA would seek to establish bilateral deals with Canada and Mexico if talks were to break down.

The two met one day after an interview was published in Forbes magazine in which Trump said that NAFTA had been "a bad deal for our country".

"If the current occupant of the White House", Trump, "wants to show that 'I'll renegotiate NAFTA, ' is more than a campaign slogan, then there has to be no ISDS", declared Rep. Keith Ellison, DFL-Minn.

"NAFTA has been a disaster for manufacturing in this country". But in the meantime we'll be able to make a deal with one.

The fourth round of talks will extend to October 17.

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