Mexico to review cooperation with United States due to Trump's threats

Wednesday, 11 Apr, 2018

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Negotiations to rework NAFTA began a year ago after President Donald Trump took office promising to take the United States out of the 1994 agreement if it could not be reworked to better serve American interests.

Trade leaders from each nation met in Washington, D.C. last week, seeking to step up negotiations.

They are now racing to finish before the talks get sidetracked by political uncertainty created by Mexican presidential elections in July and USA midterm elections in November. Talks continue this week in Washington.

Experts say the final deal could fix trade imbalances by boosting USA production in auto parts, increasing the costs of Mexican labor, and bolstering US exports into Canada and Mexico.

From the National Association of Farm Broadcasting News Service.

If achieved, an agreement in principle would start a longer process. Guajardo, however, said he didn't expect a Nafta deal would be struck this week, but would likely be signed around the first week of May.

The countries have been discussing technical details such as the phase-in period for the policy to take effect and other variables of the new formula.

In particular, agriculture states, already battered by low crop prices and poor weather, are antsy about getting slammed by tariffs in retaliation for Trump trade actions over steel, aluminum and China. We've actually got a pretty good relationship right now with NAFTA. Now he's using an old phrase, recycled from an entirely different context, to describe the current US goal of building alliances against China, on issues like steel dumping. This time, Kudlow says, Canada, and Europe, appear to be willing partners.