NAFTA: Donald Trump refuses to commit to trade pact

USA Trump and Trudeau at the White House | NAFTA

NAFTA: Donald Trump refuses to commit to trade pact

"With an agreement, in 10 years I see a strong region that can face Asia or China, without an agreement I see a weaker region in the medium and long term". Trudeau said he believed the Nafta talks could still end in a "win, win, win".

The figure is dwarfed by their trade with the U.S.: more than $480 billion past year for Mexico and more than $540 billion for Canada.

On automotive rules of origin, NAFTA negotiators face tough new USA demands to increase regional vehicle content to 85 percent from 62.5 percent, with 50 percent required from the United States, according to people briefed on the plan.

"We all understand that it has worked", he said of the 23-year-old North American Free Trade Agreement, before adding, "As we think about redoing trade agreements between Canada, the U.S. and Mexico, there is opportunity for improvement".

While speaking with members of the press, Trump said that "We may or may not be able to make that deal" when asked about the possibility of coming to an agreement with both Mexico and Canada.

"I think it's been clear that circumstances are often challenging, and we have to be ready for anything — and we are", Trudeau said. Over half the products in Mexican supermarkets are US and Canadian imports, he explains to AS/COA Online Editor-in-Chief Carin Zissis.

U.S., Canadian and Mexican negotiators are meeting in Arlington, Va., this week for a fourth round to try to revise the 23-year-old agreement, which allows the tariff-free flow of vehicles and parts across the three borders. Mexico could leave NAFTA and have the strength to move on without any serious long-term structural damage to the economy, he said. Representatives of the auto industry warned some of the US demands could raise prices for vehicles.

One of the most contentious USA proposals is around so-called rules of origin for vehicles, which govern what share of a auto must be built within NAFTA countries to receive the pact's benefits. Scheduled talks in this session have been extended by two days to Tuesday.

The proposals call for North American content, overall, to rise to 85 percent from the current 62.5 percent.

Rules of origin will be discussed by negotiators today, Sunday and Monday, according to an agenda obtained by Bloomberg. -Mexican relations and affect bilateral cooperation in non-trade areas.

Americans", she said, and acknowledged that changes to the deal would "of course be opposed by entrenched Washington lobbyists and trade associations.

The former House speaker and friend of the president says a deal will eventually be reached, after long and hard negotiations.

Trudeau's visit to Mexico is his first official sojourn to the country and follows Pena Nieto's visit to Canada in June 2016. The question now becomes are we going to be the country that leads this shift?

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