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.
Do you think that Canada is right in saying the U.S. demands would cause more harm than good? It says that Mexico and Canada fear that Trump will follow through and pull out of NAFTA which will cause disruption and economic damage. Canada and Mexico are unhappy about the U.S. push for tougher autos. Vehicles and auto parts account for most of the $64 billion U.S. trade deficit with Mexico. I think Canada and Mexico should be scared and $64 billion is a lot for the deficit.
ReplyDeleteTo respond to Addie, I believe that Canada is right in saying the US demands would cause more harm than good. I can level with some of the US's trade demands, as it seems like their priorities are based on what is best for the US, as they should be. At the same time, we have to realize that the other countries are in this agreement to reap benefits as well, so we need to be responsive to their demands to make this a profitable partnership. The article stated that the Canadian dollar lost value due to concerns about the negotiations already, so that shows evidence already of the harm that could happen if someone pulls out of the agreement. Overall in general, I really don't think ending this trade deal would be in the US's favor. At the end of the day this isn't worth tainting our relationships with our closest and some of our most valuable trade partners. This administration needs to stop with the threats and be more reasonable.
ReplyDeleteWhile I understand the need to fix the trade deficit with Mexico, punishing Canada doesn't seem like a smart idea. Canadian factories are probably exactly the same as American factories so I don't think worker rights, wage, or well-being can be argued in this case. Interesting point that Matt Blunt has, no other good is held to this standard right now. Why start with autos then? My first car (Dodge Intrepid) was mostly made in Canada. What's really funny though, is that most parts for autos are already sources from all over the place. Airbags from Japan for example, almost every auto manufacturer gets their airbags from the same place. Even my transmission in my Ford Fusion is made by Mazda. Everyone should benefit from free trade and it seems the United States is really trying to benefit them instead of the other nations as well. The Canadians are looking out for their economy as well.
ReplyDeleteThe quid pro quo (tit-for-tat) or nyaah nyaah behavior is somewhat senseless and has done little for Wisconsin when it comes to lumber and milk trade with Canada!
ReplyDelete