Trump Says New Trade Deal with Canada Could Exclude Mexico

Posted October 13, 2017

"Neither Mexico nor Canada nor major elements within the US business community and government want to see NAFTA die", Meyer says.

"With an agreement, in 10 years I see a strong region that can face Asia or China, without an agreement I see a weaker region in the medium and long term".

Mexico has been more assertive with Washington, talking openly about abandoning NAFTA if need be or slashing imports of US grain. Trump made revamping or ending NAFTA - which he has called "a awful deal for our country" - a core pillar of his election campaign as he promised more benefits for United States workers in worldwide trade deals.

Further, "attempts by Boeing to put tens of thousands of aerospace workers out of work across Canada is not something we look on positively".

As the trade talks began Wednesday, Trump, seated in the Oval Office beside Prime Minister Justin Trudeau of Canada, said it was "possible" that the United States would drop out of NAFTA. "I think it's just a bridge too far", said Wendy Cutler, the Asia Society's Washington policy director and former chief US negotiator for the Trans-Pacific Partnership trade deal canceled by Trump. Speaking in Mexico on Tuesday, the president of the U.S. Chamber of Commerce, Thomas J. Donohue, said the negotiations had "reached a critical moment".

In his meeting with Trump, Trudeau was expected to remind the president that Canada is the United States' biggest export customer, with largely balanced two-way goods and services trade, and is not the cause of USA manufacturing jobs lost under NAFTA, Canadian officials said.

The U.S. Chamber of Commerce has warned against so-called "poison pill" proposals by the U.S., including the sunset clause.

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The Chamber and the trade group for Mexico's auto industry already have come out against an anticipated proposal to raise US -specific content.

Rep. Richard Neal of MA, the ranking Democrat on the committee, said he hopes NAFTA will expand Canadian market access for US cultural industries and "will be an opportunity to update intellectual property rules".

According to a schedule seen by Reuters, meetings on government procurement, cross-border services trade, environmental issues and state-owned enterprises were set to conclude for the current round on Thursday.

Americans", she said, and acknowledged that changes to the deal would "of course be opposed by entrenched Washington lobbyists and trade associations. -Canada deal that would leave Mexico out entirely.

He said content rules for auto parts were still negotiable, despite shock in Mexico at suggestions half of all parts in cars should be made in the United States.

"In terms of trade, the US sells more to Canada than it does to China, Japan and the United Kingdom combined".