Prime Minister concludes visit to Washington, DC

Casey Dawson
October 13, 2017

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.

Negotiations to overhaul the North American Free Trade Agreement (Nafta) seem headed for the rocks, analysts say, with U.S. proposals unpalatable to Mexico and Canada. "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".

"My optimism toward NAFTA, toward a renegotiation, isn't based on personality or reading political tea leaves", Trudeau said following his talks with Trump.

"There's a path to be optimistic", he said.

The prime minister arrives in Mexico looking for a friendly ear in President Enrique Pena Nieto, himself no stranger to hostility from the Trump administration, who will receive Trudeau at the presidential palace with military honors. "It has to be fair to both countries".

"It's possible we won't be able to make a deal, and it's possible that we will", he said.

USA proposals include limiting the number of federal government contracts that Mexican and Canadian companies can win, a provision that would cause the deal to automatically expire in five years unless all three countries vote to renew, and changes in how much of a product needs to be made in North America to come under Nafta protections.

Las Vegas Sheriff: Massacre motive still unknown, investigators speaking with family
He jumped in a vehicle and drove 9 miles to the Mandalay Bay Hotel and Casino, he said in the " 60 Minutes " interview. Associated Press writers Michael Balsamo in Las Vegas and Andrew Dalton in Los Angeles contributed to this report .

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.

The U.S.is expected to propose substantially raising the regional requirement, from 62.5 percent now, and potentially add a U.S. -specific content requirement.

However, a study released on Thursday by the Motor Equipment Manufacturers Association, which represents USA auto parts makers, showed the higher content requirements would lead to the loss of up to 24,000 U.S.jobs, as some companies would forgo NAFTA's tariff-free benefits and ship in more components from other countries.

"I think it's been clear that circumstances are often challenging, and we have to be ready for anything — and we are", Trudeau said. USA negotiators have countered with a proposal that would effectively grant the other countries less access, people familiar with the talks say. "But it is our responsibility as a government to prepare for every eventuality, and that is what we are doing".

In an earlier statement, Mr Donohue said abandoning Nafta would create an "existential threat" to North America's national and economic security.

The U.S. Chamber of Commerce has warned against so-called "poison pill" proposals by the U.S., including the sunset clause. "We have always understood that draining the swamp would be controversial in Washington".

Other reports by

Discuss This Article

FOLLOW OUR NEWSPAPER