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12 Enero 2018, 08:24 | Dolorita Barahona
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But trade disputes have broken out between Canada and the US, the most recent involving USA imposed duties against Canadian newsprint imports Wednesday. "NAFTA is a big part of our trade package".
Nafta talks began at the initiative of the USA president, who has repeatedly said the Nafta accord led American companies to fire workers and move factories to Mexico.
Recently, the administration's tone and tenor has seemed somewhat tempered from those statements. It is one of those classic neoliberal trade deals that essayist George Scialabba describes as "investor rights agreements masquerading as "free trade" and constraining the rights of governments to protect their own workers, environments, and currencies". As with job loss and wage stagnation, NAFTA isn't the only cause - but it's definitely an important one. After all, in 1994, e-commerce was in its infancy and not much thought was given to the enormous impact it would have over trade in the coming decades. "You see, I'm renegotiating NAFTA, or I'll terminate it". Trump promises to negotiate a better deal for the US or withdraw. A new round of talks is scheduled for January 23 in Canada, without ideas so far on counter-proposals to some of the United States' protectionist demands.
While trade agreements can always be improved, we cannot risk losing the market access and global partnerships that have allowed the United States to boast the world's largest economy.
The new report from Energy & Natural Resources Market Reports has been published today. Combined Mexico and Canada represented almost 40 percent of USA dairy product exports in 2016. Combined they represented almost 50 percent of all US fruit and vegetable exports.
During 2016, $4.7 billion in USA dairy products were shipped to Mexico and Canada, two of the top three dairy export markets.
Trade-related job loss is also putting major downward pressure on the wages and benefits of the jobs that are left. It's unclear what would happen to the 1994 US law passed by Congress implementing NAFTA, which remains on the books. They agree that there could be some positive revisions to NAFTA.
In a previous round of talks, USA negotiators presented some contentious proposals including new stricter rules of origin for automobiles and parts, and the elimination of the NAFTA dispute resolution mechanism - which Ottawa rejected. However, the senators caution against radical changes which would curtail our ability to trade with Mexico.
A trade agreement is like any other policy; it needs to be updated occasionally.
- Lawsuit watch: A debate is already raging within the American legal community about the constitutionality of a president pulling out of a trade agreement without an act of Congress.
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