Trump says talks with Canada are going well and they could reach a deal soon for the NAFTA. Who do you think will benefit more from the deal?
Scroll down to see how people across America voted.
According to Bloomberg, the deadline is fast approaching for the U.S. and Canada to strike a deal for the new NAFTA agreement. The U.S. has been pressuring Canada, because Trump plans to inform Congress that he intends to sign a new trade pact with Mexico in 90 days. This agreement is meant to replace the current NAFTA.
The North American Free Trade Agreement (NAFTA) is a treaty between Canada, Mexico and the United States, in which all three countries agree to remove trade barriers amongst each other. The eliminations of these tariffs, increases investment opportunities for all, and makes it the world’s largest free trade agreement. The gross domestic product among all three countries is more than $20 trillion.
On Jan. 23, 2017, Trump signed an executive order to renegotiate NAFTA. After months of negotiations, on Aug. 27, the United States and Mexico renegotiated parts of NAFTA. Auto companies must manufacture at least 75 percent of the car’s value in North America, from the 62.5 percent it previously was. 40 to 45 percent of the car must be made by workers who earn at least $16 an hour.
Imported goods must use more U.S. steel, aluminum, and auto parts. In addition, more U.S. textiles, chemicals and industrial goods must be used. The dispute settlement panels would only be retained for oil, gas, energy, and infrastructure industries. The changes to the new deal should help create more jobs in the U.S. while raising the price of cars sold in America, according to The Balance.
With the U.S. and Mexico coming to an agreement on parts of NAFTA, the pressure for Canada to reach an agreement is accelerating. Many are wondering if Canada will give in to Trump’s pressure tactics. Canadian Foreign Minister Chrystia Freeland said that officials from both countries would “work into the night.” She said that the U.S. was showing they are willing to compromise, but that there was still so much work left on ironing out the full details on “specific issues.” No details were given on what the agreement will look like other than Canada wants to preserve the panels in NAFTA, which the U.S. wants removed.
Freeland’s comments, which came earlier in the day, resulted in the decreased losses of the Canadian dollar.
“Some important things that we believe we have accomplished together with the U.S. and thanks to some significant compromises Mexico was prepared to make to support Canadian workers,” she said.
A U.S. official familiar with the talks said Canada’s dairy market has been a major focal point in the negotiations. Trump had repeatedly deemed the Canadian tariffs set on some dairy products for U.S. producers unfair, according to Bloomberg.
Canadian Prime Minister Justin Trudeau had said that they are trying to reach an agreement with the U.S. but getting the “right deal” is of utter importance to Canada.
“We’re seeing if we can get to the right place by Friday,” Trudeau told reporters. “We’re going to be thoughtful, constructive, creative around the table, but we are going to ensure that whatever deal gets agreed to, is the right deal for Canada and the right deal for Canadians.”
Looks like the time crunch that Trump has set could be irrelevant if they can’t get a deal they are happy with. NAFTA has increased trade and economic growth for all three counties, but pros and cons are always debatable in terms of who benefits more. With so much on the table, do you think both will come out winning? Read the full story on from Bloomberg here.
Here’s how people on the Zip app are weighing in on this all over the country!
Trump says talks with Canada are going well and they could reach a deal soon for the NAFTA. Who do you think will benefit more from the deal? Scroll down to see how people around America voted.