Canada and Mexico will NOT make counterproposals

When trying to come to an agreement between the three countries, Canada and Mexico have recently stated that they will not make counter-proposals to the United States's demands for tougher NAFTA automotive rules and agreements, but instead, the two countries will look at offering a rebuttal. Canada is arguing that the new U.S. demands would cause more harm than good to the North American automotive manufacturing. Flavio Volpe, president of Canada's Automotive Parts Manufacturers Association, said the U.S. proposal would damage North American competitiveness and lead to fewer auto assembly and parts job on the continent. 

The rebuttal to the U.S. demands is expected to come on Monday as negotiations continue on to the fifth round of talks. Click HERE to read more about possible consequences and responses to the United State's demands.

Source:

Lawder, David, and Sharay Angulo. "Canada, Mexico to question U.S. auto content demands at NAFTA talks." Reuters, 20 Nov. 2017, https://www.reuters.com/article/us-trade-nafta/canada-mexico-to-question-u-s-auto-content-demands-at-nafta-talks-idUSKBN1DK0E9. Accessed 20 Nov. 2017.

Both parties to to keep NAFTA alive

With NAFTA’s continuously unstable nature recently, spokesmen from both the democratic and republican parties are beginning to put their differences aside in an effort to keep NAFTA intact. Texas senator Ted Cruz spoke about the consequences of losing NAFTA claiming that hundreds of thousands of Texan jobs are dependent on its continued existence. Beto O’Rourke, a Texas democratic representative, has spoken with a similar message to Trump’s advisees saying that walking away from Americas most important trade deal is not outweighed by the improvements that need to be put into place.(Andrea Drusch, 2017) To read the read more click HERE.

Works Cited

Andrea Drusch. (2017). NAFTA negotiations: Cruz, O’Rourke take on their own parties on trade | The Sacramento Bee. Retrieved November 12, 2017, from http://www.sacbee.com/news/politics-government/article183259656.html

Increase of U.S. Trade Deficit

According to John Brinkley in an article titled NAFTA Withdrawl Would Increase, Not Lower, U.S. Trade Deficit with Mexico, if President Trump withdraws from the NAFTA agreement, the United States trade deficit with Mexico will increase. Without NAFTA, the three parties will revert to the WTO, which means each country must agree to limit its tariffs to a certain level. Currently, the United States' average applied tariff with Mexico is 4.5% while countries that have no free trade agreement is only at 2.8%. If the agreement fails to continue, tariffs must be raised equally around the entire world.
You can read more about how the NAFTA withdrawal will increase the United State's trade deficit with Mexico HERE.

Source:
Brinkley, John. "NAFTA Withdrawal Would Increase, Not Lower, U.S. Trade Deficit With Mexico." Forbes, 2 Nov. 2017, https://www.forbes.com/sites/johnbrinkley/2017/11/02/nafta-withdrawal-would-increase-not-lower-u-s-trade-deficit-with-mexico/#2ecaf6023d99. Accessed 5 Nov. 2017.