The North American Free Trade Agreement has been under revisions to make it work better, and a lot of challenges remain ahead. This trade pact is also known as NAFTA and it's very important for the United States, Canada, and Mexico because it moves more than $1 trillion per year. The U.S. President believes that this trade agreement is negative for America, he is convinced that many factories have moved Mexico to take advantage of cheaper labor costs, leaving many Americans unemployed. According to a report by Reuters, the negotiators have already finished in Ottawa the third phase of the seven that will shape this agreement.
More details
The officials have concluded the chapter related to small and medium companies, and the next round of negotiations will take place in Washington the next month. Ildefonso Guajardo, the Mexican Economy Minister, stated that there will be great challenges, Canadian and Mexican officials are worried because Washington hasn't presented details on some issues. One of them is the rules of origin that outlines what percentage of a product has to originate in a NAFTA nation.
Disagreements
In theory, the negotiations will have to finish this December but it's possible they will take longer because of the complexity of the issues. Chrystia Freeland, the Canadian Foreign Minister, told the reporters that it won't be easy.
According to a report by Reuters, Donald Trump has always been complaining about it and he thinks that NAFTA is a disaster, he has threatened to leave it unless there are changes.
Tension
The negotiations took place while Canada disliked an American decision to impose preliminary duties on Bombardier’s CSeries jets, the Canadian Foreign Minister talked about it with the U.S.
Trade Representative Robert Lighthizer. Freeland insinuated that Canada could leave the NAFTA talks over the Chapter 19 dispute mechanism, under which panels from both nations make decisions on complaints about dumping and other issues. The United States has frequently lost these cases, and the trade negotiations could last beyond December.
The U.S. on NAFTA
The American delegation made an observation on NAFTA labor standards, intellectual property and proposals on investments. A miserable payment in Mexico has increased the profits of American companies, but it's been harmful to the U.S. and Canadian workers. Clearly, there must be a detailed review to correct all the negative aspects of this trade agreement.
