Reuters: Trump to begin renegotiating NAFTA pact soon with Mexico, Canada
U.S. President Donald Trump said on Sunday he plans talks soon with the leaders of Canada and Mexico to begin renegotiating the North American Free Trade Agreement.
"We will be starting negotiations having to do with NAFTA," Trump said at a swearing-in ceremony for his top White House advisers. "We are going to start renegotiating on NAFTA, on immigration and on security at the border."
Trump pledged during his presidential campaign that if elected he would renegotiate the NAFTA trade pact to provide more favorable terms to the United States.
NAFTA, which took effect in 1994, and other trade deals became lightning rods for voter anger in the U.S. industrial heartland states that swept Trump to power this month.
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WU Editor: According to Canadian media pundits (for those in Canada I am referring to Craig Oliver's response on today's CTV's Question Period) .... we should stall and prolong these talks as long as possible while working with Canada's allies in Congress and on the border states to raise objections to changing this trade agreement. I am also reading the same thing from Mexico .... delay or object to any revision. What's my take .... this is the wrong approach. By announcing his wish to renegotiate the agreement .... President Trump has just killed all future plans by U.S. companies who may want to invest in a place like Mexico because of its cheap labor and easier regulatory environment .... or in Canada because of educated workforce and infrastructure. After-all .... who wants to make an international investment when the rules may change. President-elect Trump knows this .... and I would venture that his policy will be to delay serious negotiations .... since he has already accomplished what he had wanted .... a pause in U.S. companies who are interested in moving their manufacturing facilities to Mexico .... and to a lesser extent .... to Canada. My prediction .... the governments in both Canada and Mexico know that any delay in talks will only hurt their economies .... so do not be surprised if they push for talks sooner rather than later. And when it is over .... I expect a revised agreement near the end of President Trump's term. But in the interim .... starting today .... expect no more announcements of U.S. manufacturing jobs being relocated to Mexico.
The next big trade battle will be with China .... and I predict President Trump's approach will be different. He will be wanting reciprocity .... and if he does not get what he wants, he will impose the same policies on China that China imposes on the U.S.. This .... I fear .... can become very messy.
Update: Yup .... a clear sign (from China of all places) that change is coming .... Foxconn CEO says investment for display plant in U.S. would exceed $7 billion (Reuters).
More News On President Trump Vowing To Start Negotiating NAFTA With Mexico And Canada
Trump: ‘We’re going to start renegotiating NAFTA’ -- The Hill
Trump to begin renegotiating NAFTA with leaders of Mexico, Canada -- CNN
President Trump vows to start renegotiating NAFTA -- CBS News
Trump vows to 'start renegotiating' NAFTA with Mexico, Canada -- AFP
Trump makes it official: He will renegotiate NAFTA -- USA Today
President Trump Promises ‘Good Results’ From Nafta Talks -- Bloomberg
Trump says Nafta 'renegotiations' with Mexico and Canada to start -- BBC
1 comment:
BMW, told Trump to take a flying leap, in polite Corporate Speak.
They pointed out their largest global factory was in the US, 80% of it's production was for export,
And that it relied on Chinese, Canadian and Mexican subassembly imports to operate.
They "hinted" in Corporate Speak that if there was a "Trump Tariff", they would offshore over 8,000 jobs and 35,000 subassembly jobs to more "trade friendly" areas like China.
Both the FTA and NAFTA were negotiated with Canada and Mexico as junior partners, and so the Agreements were heavily in the US's favour.
Still, both Canada and Mexico worked hard, ( with major costs) to turn a pig in a poke into a sucess.
Still, as even Harper learned, China offered much better trade deals for Canada than NAFTA.
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