Tuesday, 25 September, 2018

Trump increases pressure on Mexico and Canada to sign NAFTA

Trump increases pressure on Mexico and Canada to sign NAFTA Trump increases pressure on Mexico and Canada to sign NAFTA
Nellie Chapman | 11 March, 2018, 04:16

"Right now, 100 per cent (chance we proceed with tariffs)", Trump said Monday in the Oval Office.

There's a final scramble on to spare Canada from the impact of the USA tariff plan, which could be announced as early as Thursday.

"Adding costs to building products in North America, whether through an elimination of NAFTA and move to WTO trade tariffs or through punitive and frankly illegal steel and aluminum tariffs, hurts all of us, but mainly Americans and American jobs", Hasenfratz said.

As a candidate, President Trump promised to stop American job outsourcing and bring jobs back with a fast renegotiation of the North American Free Trade Agreement and day-one action to reverse our huge China trade deficit.

"You know, when we're behind on every single country, trade wars aren't so bad". Prime Minister Justin Trudeau canceled a $5.2 billion deal for Canada to buy Boeing Co. fighter jets, and USA officials were incensed by a wide-ranging complaint that Ottawa filed against American trade practices at the World Trade Organization. Trump has made renegotiating trade deals and getting better access to Chinese markets for American companies a pillar of his economic agenda since his candidacy.

A new complication has landed on the table over the past week: a heated dispute over steel and aluminum tariffs.

The apparent decision on Canada and Mexico is more evidence of the impulsiveness and unpreparedness with which Trump often makes policy.

Washington on Monday said that if Canada and Mexico agreed to their demands in the NAFTA talks, they could be exempted from the proposed steel and aluminium tariffs.

His second suggestion is to show a counter-threat on the steel and aluminum tariffs.

Last Thursday, Donald Trump announced - without first addressing his administration - that the US would be invoking a policy allowing them to put tariffs of 10 per cent on aluminum and 25 per cent on steel when there is a "threat to national security".

If NAFTA fell apart, the victor would not be the U.S., Mexico or Canada.

"They're going to look at agriculture districts, they're going to look at things like high fructose corn syrup, they're going to look at grain, they're going to look at dairy products", she said.

The greenback fell last month to a three-year low against a basket of major currencies, while the price of USA crude oil has rebounded as much as 156 percent from its February 2016 trough around $26 a barrel.

Trump trade adviser Peter Navarro and Commerce Secretary Wilber Ross may now be looking for a "carve-out" for Canada, that may only invite others to seek the same.

Trump said his statements on this is not new.

That did not satisfy Republican critics, and Canada had continued to threaten retaliation.

But other officials told reporters that there was nothing ready to sign, and the afternoon meeting was left off the presidential schedule released Wednesday night. Trudeau himself called Trump on Tuesday.

With so much uncertainty surrounding these tariffs-which could have long-lasting impacts on economies around the world-and more industry experts coming out against the current proposal, investors might expect stocks to have dipped across the board. "We are going to make sure we're doing everything we need to do to protect Canadian workers - and that means waiting to see what the president actually does".