emfizz.com December 14, 2017

Reed presses Trudeau on dairy, wine issues under NAFTA

13 October 2017, 12:07 | Jan Cross

Canada cools on Boeing jets, as Trudeau meets Trump

Prime Minister Justin Trudeau and U.S. President Donald Trump take part in a joint press conference at the White House in February. Trudeau plans to discuss NAFTA security issues and NATO with Trump during his stay in Washington

Hosting the Canadian prime minister at the Oval Office, Trump said the United States had "a tough negotiation" over NAFTA ahead, which also includes Mexico, adding that it had to be fair to all countries.

"Blowing up Nafta guarantees chaos, and guarantees you lose jobs", Gingrich told the Dentons event, joking that Trump "has a sliding scale of 'worst deals"' that must be taken with a grain of salt.

"We'll see if we can do the kind of changes that we need", Mr. Trump told reporters at the White House.

"We're concerned that we may be on a course to upset the trade balance in Nafta that has unquestionably led to a vibrant and successful auto industry in the United States", said Bozzella, whose group represents companies including Toyota, Honda Motor Co. and Nissan Motor Co.

The top US business group pledged to fight to preserve the pact, a congressional committee said it was committed to successful talks, and Mexico signaled it can live without the accord. Still, he said Canada would be "ready for anything".

"My optimism towards Nafta, towards a renegotiation, isn't based on personality or reading political tea leaves". According to the U.S. Trade Representative, the U.S., Canada and Mexico have agreed to a fairer way of enforcing rules governing competition. But critics argue it also led to the downfall of US manufacturing as companies moved across the southern border to take advantage of cheaper labor.

NAFTA has "created American jobs, boosted economic growth, and strengthened local economies", the letter said, "but we know we can do even more to seize the benefits of trade with our North American neighbors". It also wants to scrap a dispute-resolution process favored by Canada.

John Bozzella, CEO of the Association of Global Automakers, said the group that represents overseas-based carmakers in the US has been "blizzarding" Capitol Hill to explain why the expected Nafta proposals are a problem.

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Ujczo expects supply-management in Canada to be brought up in this round. "There is also a wine issue in British Columbia where they are not letting our wines out front where their customers can choose". He also cited plans to limit Canadian and Mexican access to USA government procurement rules.

U.S. Chamber of Commerce President Thomas Donohue called Trump's proposals "poison pills" for Canada and Mexico, which could result in the death of the agreement, Reuters reported. "Among conditions demanded by the US are a significant increase in regional content - particularly USA content - in the region's exports, a uniform upper limit for government purchases, some restrictions to agriculture products coming to the USA from Mexico and Canada, and the elimination of the chapter on resolution of controversies".

If negotiations fail to reach a solution, Trump alluded to the possibility of having separate deals with Canada and Mexico.

"If you don't think this is a reality that the President is looking at withdrawal, I want to make it clear that it's a very real possibility that we will either withdraw or we will reach a deal that I don't think will have any chance of getting through Congress in 2018".

"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.

On Tuesday, Donohue also singled out a "sunset clause" that would automatically terminate NAFTA every five years unless there were fresh negotiations.

"I think Justin understands this, if we can't make a deal, it will be terminated and that will be fine", the president said.

The meeting, part of a bilateral "CEO dialogue" that meets a couple of times each year, included a closed-door discussion on the NAFTA negotiations addressed by Foreign Minister Luis Videgaray and Economy Minister Idelfonso Guajardo, who are in charge of the negotiations for Mexico.

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