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Found 2 results

  1. Guest

    NAFTA

    Round four of the Nafta negotiations kicked off yesterday, but this time, negotiators are trading in their peace pipes for nunchucks. That’s because a few aggressive U.S. demands could prompt Mexico and Canada to walk away from the table: Proposing a “sunset” provision, which would terminate Nafta after five years unless the countries actively renew it. Introducing an “auto rules of origin” clause requiring Nafta-made cars to source over 50% of their content from the U.S. Gutting the “Investor State Dispute Settlement,” a system that allows private corporations to sue foreign governments. Weakening the ISDS would create more uncertainty for U.S. companies investing abroad…in let’s say…Mexico (h/t Axios). So what’s tying these proposals together? Trump wants to reduce trade imbalances with our neighbors (like a $64.3 billion deficit with Mexico) by “leveling the playing field” for U.S. manufacturers. But other groups, like the U.S. Chamber of Commerce, disagree. Its argument comes straight from an Econ101 PowerPoint: barriers lead to economic inefficiencies…and free trade is a tide that lifts all boats.
      Hello guest!
  2. Guest

    Ottowa, Canada

    U.S. Trade Representative Robert Lighthizer is finishing up the third round of NAFTA negotiations alongside counterparts from Mexico and Canada. They’re talking cars. Right now, a law known as the “rules of origin” states that for a car produced in NAFTA countries, 62.5% of its total value must originate in those countries. BUT there aren’t any country-specific mandates. Expect the U.S., which feels like it’s getting stiffed in vehicle manufacturing, to demand a minimum level of U.S.-made parts.

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