Trump says open to bilateral Canada, Mexico pacts if NAFTA talks fail

Mexican Foreign Minister Luis Videgaray

The fourth round of negotiations for the North American Free Trade agreement is underway, and American, Mexican, and Canadian negotiators are entering some of the more hard subject matter.

The North American Free Trade Agreement is in its 23rd year.

Canada now plans to buy a package of used fighter jets instead of new Boeing planes, raising the stakes in a trade spat ahead of talks Wednesday between Prime Minister Justin Trudeau and President Donald Trump. The Trump administration is calling for an 85-percent threshold, with a 50-percent requirement for US -specific content. -Mexican relations and affect bilateral cooperation in other areas. The NAFTA competition chapter is also known as Chapter 15. Moore pressed him on why the Trump administration use of trade deficits to judge the deal's success, which he called a "simple binary approach to scoring".

In his appearance with Trudeau, Trump said: "We'll see what happens" when asked whether Nafta was doomed.

The Mexican peso weakened for the fifth straight session on Tuesday amid the increased tensions, and hit its weakest level against the dollar since early June.

The negotiations will continue into next week.

While Trump campaigned on killing Nafta, mostly citing the U.S.'s trade deficit with Mexico, he's facing resistance at home. Trump left open the possibility that the United States would seek to establish bilateral deals with Canada and Mexico if talks were to break down.

Round 4 of NAFTA talks began Wednesday in Arlington, Virginia. It has argued repeatedly that the trade pact is critical to USA industries such as agriculture and manufacturing.

Those proposals are considered poison pills by Canada and Mexico. "Every year, the US ships more goods to Canada, than it does to China, Japan and the United Kingdom, combined".

Donohue singled out plans to make automakers source more parts in North America, as well as proposed changes to the dispute resolution mechanism as obstacles to NAFTA's renewal.

Perdue added that there are also issues with poultry access.

Automakers in Mexico say excessive content requirements could do serious damage to the industry's competitiveness.

Aurora, Ontario-based Magna has over 25,000 employees in USA and supplies more original equipment parts by sales to carmakers on the continent than any other supplier, according to Automotive News rankings. Guillermo Vogel, a steel company executive, co-chaired the event in Mexico, which included closed-door talks regarding NAFTA with Foreign Minister Luis Videgaray and Economy Minister Idelfonso Guajardo, who are responsible for Mexico's involvement in the negotiations, Reuters reported.

The fate of a deal that underpins $1.2 trillion in annual trade is so uncertain that Trudeau's predecessor, Stephen Harper, warned in his own speech Wednesday that companies should start planning for the pull out.

"The president has strongly criticized this agreement for years".

The CEO meeting ran in parallel to talks near Washington aimed at refreshing the 1994 agreement, with Mexico, Canada and businesses united in opposition to a number of radical USA proposals they say would damage the North American economy. "Naturally they will defend this lopsided accord", USA trade Representative Robert Lighthizer said on Tuesday.

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