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NAFTA negotiations will be tough, says Trump

13 Octubre 2017

There was Trump, who veered within minutes between killing the North American Free Trade Agreement, saving it or breaking it into two-way pacts. Meanwhile, Trump ally Newt Gingrich was advising observers to ignore the bluster and expect the pact's salvation.

Despite the handshake, Canada's Prime Minister Justin Trudeau and U.S. President Donald Trump were not ready to announce progress on revising or replacing NAFTA, the North American Free Trade Agreement.

Mr Trudeau is scheduled to visit Mexico on Thursday to hold additional discussions on Nafta. "It's possible we won't be able to make a deal, and it's possible that we will".

Mr Trump, who made trade a key part of his 2016 presidential campaign, has repeatedly criticised Canada, alleging it unfairly blocks U.S. dairy products and subsidises its softwood lumber industry.

"What we saw in round 3 in Ottawa was really the start of the USA putting forward very aggressive positions". Trudeau, for his own part, cautioned against speculation and emphasized the prospects for an agreement.

"We've been patient, cool-headed and constructive", Mr. Donohue said Tuesday in Mexico City.

Mexican Foreign Minister Luis Videgaray said on Tuesday that an end to NAFTA would mark a breaking point in U.S. "My optimism is based on the fact I know how good it has been".

He says the USA positions will continue to get more aggressive in round four on things like automotive rules-of-origin that are more stringent than in any other free-trade agreement in the world.

Earlier in the day, Trudeau addressed the members of the House of Representatives Committee that oversees trade. Reed said Trudeau was amenable to changes that could help NY farmers and wineries. "We have to provide certainty for investment to succeed to create jobs and grow our economies".

And Thomas Donohue, president and CEO of the U.S. Chamber of Commerce, the biggest business lobby in the United States, vowed to "fight like hell" to protect NAFTA against the "misguided forces of protectionism". A Democratic colleague called on Canada to loosen its protections for cultural industries, exempted from the current NAFTA. "They're going to do well, we're going to do well but it has to be fair to both countries". He said the likelihood of passing a deal would drop after the so-called fast-track authority expires in July.

Mr. Trump raised the possibility he would consider a separate U.S. Trump administration officials have promised to cut the surplus.

"Let's just agree to disagree", Ross replied.

The talks between the two leaders come at a time when Trump has repeatedly threatened to terminate NAFTA deal completely. Gingrich played down the prospects of Trump walking away from Nafta up while Harper warned the risk was real. The first one was on government procurement known as Buy American, which basically said we're going to cut back how much Canadian and Mexicans can participate in our government procurement processes here in the USA but by the way, we want you and Canada and Mexico to allow more USA participation on your side, so I think both Canada and Mexico said we're not so sure about that.

NAFTA eliminated trade barriers between the U.S., Canada and Mexico to generate trade growth.

NAFTA negotiations will be tough, says Trump