Negotiators weigh NAFTA progress as Canada fumes over Bombardier

Negotiators weigh NAFTA progress as Canada fumes over Bombardier

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. The U.S., Canada and Mexico are far apart on important issues such as how to resolve trade disputes.

After a five-day meeting in Ontario, the three countries say talks to modernize the 23-year-old deal could be over by the end of the year.

"Following the third round, senior Mexican and Canadian officials pointed out that the U.S. had not yet submitted detailed proposals on some issues that are expected to be particularly contentious, including lowering the USA trade deficit, revamping the dispute settlement process, and tightening rules of origin, particularly with respect to automobiles and auto parts".

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. The U.S. Commerce Department made the decision to impose duties on Bombardier's marquee jetliner on the final day of negotiations. Chrystia Freeland, the Canadian Foreign Minister, told the reporters that it won't be easy.

Negotiators weigh NAFTA progress as Canada fumes over Bombardier

Freeland has suggested that Canada could walk away from the NAFTA talks over the so-called Chapter 19 dispute mechanism, under which binational panels make binding decisions on complaints about illegal subsidies and dumping. Substantive progress was also made on NAFTA's competition chapter, and negotiators say they expect to conclude this work before the next round scheduled to be held in Washington on October 11-15.

Trade among the three nations has quadrupled since NAFTA came into effect in 1994, surpassing $1 trillion in 2015. The United States has frequently lost these cases, and the trade negotiations could last beyond December.

Laxer labor standards and lower pay in Mexico have swelled corporate profits at the expense of Canadian and US workers, making the issue one of the major battlegrounds of the NAFTA talks.



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