Auto suppliers fear job losses if United States quits NAFTA

Auto suppliers fear job losses if United States quits NAFTA

"I continue to believe in NAFTA; I continue to believe that as a continent, working together in complementary ways is better for our citizens and better for economic growth, and allows us to compete on a stronger footing with the global economy", Trudeau said.

Asked by a reporter if he would make a trade pact with Canada if he can not reach agreement with Mexico in the NAFTA negotiations, Trump said: "Oh sure, absolutely".

President Donald Trump's trade negotiators entered the latest round of NAFTA talks Wednesday under growing pressure inside their own country to step back from a confrontational stance that's left the US isolated at the negotiating table.

Vogel said USA and Mexican businesses still believed NAFTA talks would produce a good deal and said they would continue to lobby their governments and lawmakers to negotiate a good deal.

Trump, who has long criticised the agreement and almost withdrew from the pact earlier this year before instead pursuing renegotiation, said, "It's possible we won't be able to make a deal and it's possible that we will". "I'm of the view that over the long term, because trade has been so beneficial for everyone, that we will get through periods of question". "It has to be fair to both countries".

Enrique Peña Nieto, Mexico's president, has also called for the modernization of the 23-year-old deal.

"There are several poison pill proposals still on the table that could doom the entire deal", he said in a speech delivered in Mexico.

The study, released as NAFTA negotiators from the U.S., Canada and Mexico meet in the Washington, D.C. suburbs, found that a 35 percent tariff that would be placed on auto parts that are made in the U.S. and shipped to Canada or Mexico without the trade agreement's duty-free treatment would result in a job loss of 25,000 to 50,000 in the parts supplier industry. "My optimism is because I know how good NAFTA has been for million of citizens of Canada, the United States and Mexico".

The part supplier group said Thursday that US automakers would be at a disadvantage if they face higher tariffs than their counterparts in other countries outside of North America do.

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. Mexican Foreign Minister Luis Videgaray, speaking ahead of the latest round of talks, said terminating Nafta could harm US-Mexico relations and damage co-operation on issues like fighting drug-trafficking.

"If the required content to hit the threshold for a NAFTA vehicle is too high, people may say, 'Look, it's just too hard, it's too high, so we'll just ship the vehicles in, '" Magna International Inc. It's time after all of these years and we'll see what happens. "We have always understood that draining the swamp would be controversial in Washington".

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