Trudeau says Canada is ready if Trump nixes NAFTA

Trudeau says Canada is ready if Trump nixes NAFTA

But is the name really the problem?

Auto companies that build in the US credit NAFTA with leading to industry success, but they're warning achievements could stall if there are significant changes to the deal.

Trump has called NAFTA "the worst trade deal ever". Terminating NAFTA would have negative impacts on jobs, exports and output even after new supply chains are formed.

Freeland met her Mexican counterpart, Luis Videgaray, and the U.S. Secretary of State, Rex Tillerson, who is on a brief tour of Latin America.

As president of the American Automotive Policy Council, Matt Blunt is at the center of negotiations to modernize the 24-year-old North American Free Trade Agreement.

And that's if the U.S. continues to push for higher American-made content in automobile manufacturing. "He lives by domination and he lives to destroy". Canada's dairy system, Mexican labour laws, and access to USA government procurement, for example, are topics that did not seem to be discussed at length in this round.

These efficiency losses and trade shifts would have an impact on USA production of both goods and services, and thus also on US employment.

"It's a very major undertaking and what we do to the rules of origin will have potentially a dramatic impact on the auto industry, including supply chains", she said.

Lighthizer said trilateral negotiations are more "complicated and contentious" than bilateral talks.

On the weekend, a US trade court, the International Trade Commission, rejected the USA government's 292 per cent tariffs placed previous year on Bombardier's aircraft being sold in the U.S.

Just hearing that has to raise some alarm bells.

"As we've said from day one, we thought the initial commerce ruling was unfair and punitive", Freeland said in a separate interview with Bloomberg.

"Canadians do not view free trade as a zero sum game in which one side must lose in order for the other to win", she said in a CBC story.

During the joint news conference, Lighthizer said Canada has an $87 billion surplus with the U.S; $46 billion when energy is removed. Canada is pushing for modernization of Nafta while mounting a widespread lobbying campaign in the U.S.to put pressure on Trump to not follow through on his threat to kill the deal.

While there was tough talk from Canada and the USA, the tone was somewhat more positive than after the last round, when Freeland openly accused the US of deliberately trying to undermine NAFTA, calling its list of unconventional proposals "troubling".

While Trump said past year he was seeking to just tweak trade ties with Canada - and Mexico looked like the main target of a revamp - the positions have shifted.

Mr Trump's trade chief, speaking on Monday after the sixth of eight rounds of talks, rejected proposals for unblocking the negotiations but promised to seek quick breakthroughs. "We prepare for the blizzard", she said.

But are things really working? Apparently Canada added fuel to the fire in the latest round of talks that took place in Montreal by putting forward some ideas on how to calculate the value of "regional content" in vehicles, including giving more credit for driverless and electric cars, as well as research and development work on such advanced vehicles.

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