Do you think that Canada and Mexico will give in or - do you think they'll just say F it and impose their own tariffs on our agricultural products?
Here are the main sticking points:
Here are the main sticking points:
- The sunset clause -
The Trump administration has proposed a NAFTA clause that would allow the treaty to expire after five years, effectively requiring the three governments to reauthorize it.
Basically - not only Mexico City and Ottowa oppose this but so do the majority of US business, agriculture and many key US lawmakers. They need the certainty that a trade agreement provides in order to plan for the future - one that must be renegotiated and re-ratified every 5 years is pretty much useless for all.
- Automotive content -
NAFTA requires that at least 62.5 percent of the components of a vehicle be made in one of the three member countries, in order that customs duties don't apply.
The Trump administration wants that figure increased to 85 percent, with 50 percent of those components made exclusively in the United States. The US also wants steel, aluminum, copper and plastic used in those components to be made part of the calculation, according to US and Canadian media.
Yet - the US auto industry opposes this requirement.
- Arbitration under Chapter 19 -
This little-used provision of the agreement allows arbitration by private legal experts to resolve disputes over countervailing duties and dumping.
The Trump administration has branded the provision as unfair to US businesses and workers, since a Chapter 19 process can overrule decisions made by US agencies.
But Canada has successfully used Chapter 19 arbitration to rebut US accusations that Canadian exporters sold lumber at below-cost prices.
"An effective, transparent and enforceable dispute settlement mechanism is essential to NAFTA," Canadian Foreign Minister Chrystia Freeland said Tuesday.
"Just as good fences make good neighbors, good dispute settlement systems make good trading partners."
In July, Mexican lawmakers also called on their government to reject any proposal during NAFTA talks to scrap Chapter 19 arbitration.
Do you see Canada and Mexico changing their minds on this and submitting to US courts or agencies?
- Canadian 'supply management' -
Dating to the 1970s, this system protects Canada's farmers and consumers from price swings for dairy and poultry goods but also keeps out foreign competition.
The US has reportedly asked for the system to be phased out within a decade, allowing for US exports of milk and poultry to Canada to begin.
Canada argues that American producers also benefit from state subsidies in the sector.
Now this might arguably be renegotiated - I don't see how US producers benefit from this but then...I don't know what recipricol agreements we might have for our side either.
- Procurement -
Freeland said Washington had proposed limiting its NAFTA partners' access to US government procurement contracts.
"The United States has put forward a proposal that according to our calculations would give Canada and Mexico less access to the US government procurement market than Bahrain currently enjoys," she said.
Why would they agree to this?
They let FRANCE run the eastern half of their dismal prairie...We stole their national pastime by taking over the NHL.....in a word they SUCK, eh? eh?
