Canada says it will shrug off threats from Trump on NAFTA

“President Trump has been clear from the very beginning that if the NAFTA renegotiation is unsuccessful, he will withdraw from the agreement”, Lighthizer said in a statement, adding that he’s working on “substantial changes” in the deal to fix its “fundamental failures”. But that it would be a mistake to use NAFTA negotiations to shut off America and to cut down trade.

NAFTA has been heavily criticized by Trump who called it the “worst deal in United States history”. John Cornyn, a longtime supporter of free trade and updating NAFTA.

Although Trump has argued that NAFTA drew hundreds of thousands of American jobs to Mexico, where wages are lower, Johnson “staunchly” disagrees.

Removing existing barriers to trade must remain the top priority for negotiators, rather than creating new ones. A modernized agreement should include updated standards based on sound science for these products. Under this investor-state dispute settlement mechanism, Canada has lost or settled six claims paying a total of $170 million in damages, Mexico has lost five cases and paid out $204 million, while the United States has won 11 cases without a single loss.

The president’s renewed threat Tuesday reignited such concerns.

Like Ottawa, Quebec is reassuring on al issue of NAFTA.

“Unless Mexico and Canada capitulate to some of Trump’s aggressive demands in negotiations during the next four months, termination looks genuinely possible”, Hufbauer added.

“We all agree that NAFTA needs updating”, Lighthizer said in advance of the opening round of talks in Washington with Canadian Foreign Affairs Minister Chrystia Freeland and Mexican Secretary of the Economy Ildefonso Guajardo.

USTR said negotiators from all sides will now continue their own domestic consultations in an effort to advance the negotiating text ahead of the second round of talks scheduled to take place in Mexico from September 1-5. “Additionally, US companies benefit from Mexico as a manufacturing hub, where cheaper input costs not only provide for cheap consumer goods but also cheaper intermediate goods for US manufacturers, which helps keep them globally competitive”.

Overall, we must move through this process quickly.

Other business leaders were more critical. But whether you’re buying a auto or negotiating a trade agreement, there’s got to be give and take. “Global markets can react positively or negatively depending on what the president says”. Foreign Minister Luis Videgaray brushed off Trump’s comments as simply a negotiating tactic that should not surprise or frighten Mexico.

Taylor said the Charlottesville violence and the criticism of Trump’s reaction to it are leading to an increase in pressure on Mexico.

The Trade Campaigner for the Council, Sujata Dey points out other concerns, “It is very unsafe that the Liberal government is going to put CETA procurement provisions in NAFTA, which will get rid of buy local policies”.

“If the president were to rip up NAFTA, and then sort of jack tariffs way up, I think somebody would be able to come in and say…”