Trump Calls Trudeau `Great Friend' as Nafta Tension Remain High

Trump Calls Trudeau `Great Friend' as Nafta Tension Remain High

Trump Calls Trudeau `Great Friend' as Nafta Tension Remain High

US President Donald Trump has criticised the trade pact for luring American manufacturing jobs to low-wage Mexico and has vowed to quit the pact or revise it to reduce his country's US$64 billion (S$87 billion) trade deficit with its southern neighbour.

"The clear focus was that we have to send a message to all the different constituencies about how much of an error it would be to cancel NAFTA, or make a bad NAFTA", Vogel said in an interview with Reuters. "So we'll see what happens with Nafta, but I've been opposed to Nafta for a long time, in terms of the fairness of Nafta".

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.

Trudeau told reporters in Washington DC that he agreed with the U.S. president that that the NAFTA trade deal needed to be revamped and that any new agreement needed to "give citizens opportunities to succeed". "We have a tough negotiation and it's something you will know in the not too distant future because we are going to be discussing NAFTA and we will be discussing defense".

It's fair to say that 2017 has been a turbulent year for Mexico, given that the new White House occupant keeps making public comments threatening North American trade relations.

"Withdrawing from or weakening trade agreements like NAFTA would only benefit our competitors in Europe and Asia, including China", Bolten said.

"We all understand that it has worked", he said of the 23-year-old North American Free Trade Agreement, before adding, "As we think about redoing trade agreements between Canada, the U.S. and Mexico, there is opportunity for improvement".

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Mexico's foreign relations secretary says his country won't accept "limited, managed trade", an apparent reference to demands for higher U.S. and regional content rules on products like auto parts. The U.S. auto parts industry employs about 870,000 workers. Mexico strongly opposes such a move, which would damage its own auto industry.

On automotive rules of origin, NAFTA negotiators face tough new US demands to increase regional vehicle content to 85 percent from 62.5 percent, with 50 percent required from the United States, according to people briefed on the plan. Scheduled talks in this session have been extended by two days to Tuesday.

Rules of origin will be discussed by negotiators today, Sunday and Monday, according to an agenda obtained by Bloomberg.

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

Trudeau and Canadian Foreign Minister Chrystia Freeland met with members of the House Ways and Means Committee in Washington Wednesday morning, with Chairman Kevin Brady, R-Texas, saying the committee was dedicated to "successful" negotiations.

"There will always be challenges that come up that we can thoughtfully work through", he told the lawmakers.

Meanwhile, a veteran Mexican diplomat has expressed fears about the possibility that NAFTA could be ditched in favour of bilateral agreements, an issue raised by Trump as well.

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