Trump’s Tough Talk on Nafta Suggests Pact’s Demise Is Imminent
- 7 years ago
Trump’s Tough Talk on Nafta Suggests Pact’s Demise Is Imminent
So we’ll see what happens with Nafta, but I’ve been opposed to Nafta for a long time, in terms of the fairness of Nafta.”
Mr. Trudeau, in comments later at the Canadian Embassy, said he remains optimistic about the potential for a Nafta deal
but noted that Canadians must be “ready for anything.”
The collapse of the 1994 trade deal would reverberate throughout the global economy, inflicting damage far beyond Mexico, Canada
and the United States and affecting industries as varied as manufacturing, agriculture and energy.
The United States is pushing for higher levels, including a requirement to make 85 percent of the value of automobiles
and auto parts in North America, up from 62.5 percent currently, and an additional requirement for 50 percent of the value to come from the United States.
Business groups say they are firmly opposed to an American push to curtail a provision called investor-state dispute settlement, which allows companies to sue Canada, Mexico
and the United States for unfair treatment under Nafta.
As the trade talks began on Wednesday, Mr. Trump, seated in the Oval Office beside Prime Minister
Justin Trudeau of Canada, said it was “possible” that the United States would drop out of Nafta.
In his remarks Tuesday, Mr. Donohue called the administration’s proposed changes to these provisions “unnecessary and unacceptable.”
Mr. Donohue’s remarks followed a sharp exchange of words between the Chamber of Commerce,
the country’s most powerful business lobby, and the Trump administration on Friday.
So we’ll see what happens with Nafta, but I’ve been opposed to Nafta for a long time, in terms of the fairness of Nafta.”
Mr. Trudeau, in comments later at the Canadian Embassy, said he remains optimistic about the potential for a Nafta deal
but noted that Canadians must be “ready for anything.”
The collapse of the 1994 trade deal would reverberate throughout the global economy, inflicting damage far beyond Mexico, Canada
and the United States and affecting industries as varied as manufacturing, agriculture and energy.
The United States is pushing for higher levels, including a requirement to make 85 percent of the value of automobiles
and auto parts in North America, up from 62.5 percent currently, and an additional requirement for 50 percent of the value to come from the United States.
Business groups say they are firmly opposed to an American push to curtail a provision called investor-state dispute settlement, which allows companies to sue Canada, Mexico
and the United States for unfair treatment under Nafta.
As the trade talks began on Wednesday, Mr. Trump, seated in the Oval Office beside Prime Minister
Justin Trudeau of Canada, said it was “possible” that the United States would drop out of Nafta.
In his remarks Tuesday, Mr. Donohue called the administration’s proposed changes to these provisions “unnecessary and unacceptable.”
Mr. Donohue’s remarks followed a sharp exchange of words between the Chamber of Commerce,
the country’s most powerful business lobby, and the Trump administration on Friday.