Trump, Trudeau meet at the White House amid new NAFTA talks

Trump, Trudeau meet at the White House amid new NAFTA talks

Trump, who has long criticised the agreement and almost withdrew from the pact earlier this year before instead pursuing renegotiation, said, "It's possible we won't be able to make a deal and it's possible that we will".

"Neither Mexico nor Canada nor major elements within the USA business community and government want to see NAFTA die", Meyer says.

Canada, which shares Washington's concern over competition from cheap Mexican labor, is notably pushing for Mexico to improve workers' wages under the new NAFTA - something the Pena Nieto administration says should be determined by the market, not dictated by a trade deal.

President Donald Trump and Canadian Prime Minister Justin Trudeau put up a front of accommodation and cooperation at the White House that belies the alarms being raised by industry and farm groups over changes to Nafta being pushed by the U.S.

"With an agreement, in 10 years I see a strong region that can face Asia or China, without an agreement I see a weaker region in the medium and long term".

The former Conservative leader, who's known as an ardent free trader, says powerful anti-trade forces that predate Trump's presidency are at play in American society and aren't going away anytime soon.




"If every marriage had a five-year sunset clause on it, I think our divorce rate would be a heck of a lot higher", Canada's ambassador to Washington David MacNaughton said last month.

"Other automotive powerhouses in the developed world such as Germany and Japan also have complex and integrated supply chains similar to the United States, with access to low cost production", the group said. The original free trade agreement signed between the United States and Canada in 1988 did not include Mexico.

The study, released as NAFTA negotiators from the U.S., Canada and Mexico meet in the Washington, D.C. suburbs, found that a 35 percent tariff that would be placed on auto parts that are made in the U.S. and shipped to Canada or Mexico without the trade agreement's duty-free treatment would result in a job loss of 25,000 to 50,000 in the parts supplier industry. He has testified before the U.S. Senate committees on foreign relations and the judiciary. "It makes sense to modernize it", said Glenn Hamer, president and CEO of the Arizona Chamber of Commerce.

NAFTA negotiators face tough new USA demands to increase regional content for autos to 85 percent from 62.5 percent, with 50 percent from the United States, according to people briefed on the plan.

The rules of origin demands are among several conditions that the U.S. Chamber of Commerce has labelled "poison pill proposals" that threaten to torpedo the talks. US negotiators have countered with a proposal that would effectively grant the other countries less access, people familiar with the talks say. "We have to be prepared for the different scenarios that could come out of this negotiation".

In an earlier statement, Mr Donohue said abandoning Nafta would create an "existential threat" to North America's national and economic security.

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