Mexico vs. Canada in trade talks

13 Août, 2018, 18:41 | Auteur: Anatole Charbonneau
  • U.S. President Donald Trump issued a fresh warning that he would slap auto tariffs on Canada if NAFTA talks fail.
Brendan Smialowski  AFP  Getty Images

US President Donald Trump tweeted that a "deal with Mexico is coming along nicely", emphasizing that "autoworkers and farmers must be taken care of or there will be no deal".

Trump then sent a warning to Ottawa: "Their Tariffs and Trade Barriers are far too high. Will tax cars if can't make a deal!"

The same post referenced NAFTA talks between the United States and Mexico saying "Deal with Mexico is coming along nicely and Canada must wait".

"The US and Mexico, which have been in bilateral negotiations for about three weeks, appear to be getting close" to agreement over auto manufacturing, David MacNaughton said in an interview on BNN Bloomberg television. It seems that new sticking points have emerged over Trump's threat to impose steep automotive tariffs.

Mexico's electoral court certified the July 1 election victory of President Andres Manuel Lopez Obrador on Wednesday. Of course, the trade talks are only bilateral at this time because Canada is not included in the talks between the US and Mexico. Administration officials and congressional aides have said the vehicle tariff probe, like the metals tariffs, in part is aimed at winning concessions during ongoing NAFTA renegotiation talks. But after Friday's tweet from Trump praising the Mexican president, it does leave a particularly bad taste in the mouth as to what is really going on.

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Ultimately it is in Canada's best interest to align with the U, they will.

US Trade Representative Robert Lighthizer and Mexican Economy Minister Ildefonso Guajardo have been meeting in Washington for the last 2weeks, with talks focused on rules for how much North American content should be included in cars, a pivotal issue in the discussions.

Zyblock said that while he understands the opposition from the Canadian government and business leaders to the USA proposal for a sunset clause on NAFTA, reaching a deal is ultimately more important for the economy.

Trump added that Canada "must wait" to rejoin the NAFTA talks. On his way out of the meeting, reports said Guajardo indicated the two sides have made progress and will meet again next week to continue their talks for a fourth straight week. One-on-one talks between the US and Mexico are set to continue next week, longer than initially anticipated. But their loyalty is believed limited, since the $16-an-hour wage demand that threatens to make some Mexican auto plants less competitive was reportedly based partly on a Canadian proposal.

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