Experts believe that the fourth round of negotiations will not succeed
The US President Donald trump and the Prime Minister of Canada Justin Trudeau on Wednesday met at the White house to discuss the revision of the North American free trade agreement (NAFTA) on the background of growing contradictions regarding changes to the terms of the contract.
Experts in the trade predict that the fourth round of negotiations reach a deadlock, while the United States aggressively pursuing controversial changes to the rules of production of cars. Currently, the rules provide that at least 62% of components for cars sold in North America must be produced in the region to avoid import taxes. The administration of the trump demands to raise the threshold to 85 percent with retention of 50 percent for the United States.
The U.S. chamber of Commerce on Tuesday accused the administration of trump in an attempt to undermine the negotiations by putting forward proposals obviously disadvantageous.
The administration of the trump in recent months has imposed tariffs on canadian airline’s Bombardier and timber harvesting enterprises, as well as criticized in the canadian wine and dairy industries. However, canadian authorities deny that trump is deliberately violates Canada, noting that disagreements over aviation and wood has existed for many years.
The Minister of foreign Affairs of Canada Chrystia Freeland said that Trudeau will try to convince trump to focus on Mexico, which is also involved in the negotiations, insisting that she is the source of potential problems in the negotiations on the revision of NAFTA.
According to Freeland, Canada is to negotiate with the slogan “We are your largest client.” She stressed that Canada is not the cause of the loss of jobs in American industry, since it buys US more goods than China, Britain and Japan combined.
However, many jobs disappear to Mexico, where wages are much lower than in the US. Mexico has lured into its territory a number of automotive and other businesses from the USA that resulted in a trade surplus of 64 million dollars last year. The administration trump has promised to reduce the surplus.
The Minister of foreign Affairs of Mexico Luis Videgaray warned that the gap NAFTA would significantly damage U.S.-Mexican relations and the negative impact on bilateral cooperation in areas not related to trade.
Among other proposals, the United States, causing objections from Canada, Mexico and most of the representatives of American business: an introduction the five-year expiration of the agreements, the reform of the arbitration system in NAFTA, a review of the requirements in the sphere of intellectual property protection and the introduction of new measures for the protection of American farms seasonal produce.