In what will no doubt be one of the most important meetings of the year, representatives from Canada, Mexico and the United States are meeting in Ottawa to renegotiate NAFTA. The proposed renegotiation was one of U.S. President Donald Trump’s campaign platforms and has been one of his greatest economic priorities.
Reuters News reports that “one key issue is the U.S. desire to strengthen rules of origin for autos, which dictate how much of a vehicle’s components must originate from within North America to qualify for tax free status.” Both Mexico and Canada have major automotive manufacturing sectors in their economies. Reuters continues:
U.S. President Donald Trump wants more U.S. content in autos, citing trade deficits of $64 billion with Mexico and $11 billion with Canada. Trump, who says NAFTA is weighted against his country, has threatened to walk away from the agreement.
While this is only the third of seven scheduled meetings, it looks like it may be the most contentious one so far. Reuters adds that “The United States is also expected to present proposals on intellectual property and investment, sources with knowledge of discussions said. Other areas of disagreement include dispute settlement mechanisms.” Issues such as these have really put the pressure on Canadian and Mexican negotiators as they fight to maintain their countries’ positions within North America’s economic framework.
To learn more, go to reuters.com. To receive more updates such as these, sign up for our free newsletter.
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