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Mexico, Canada begin bilateral government procurement talks as U.S. won’t move off dollar-for-dollar push

MEXICO CITY – Mexico and Canada have begun bilateral negotiations on government procurement market access as trilateral talks have broken down over the United States' refusal to move off its “dollar-for-dollar” approach, sources familiar with the discussions said. U.S. Trade Representative Robert Lighthizer has made clear that the U.S. will not give up on its proposal, these sources said, leaving Canada and Mexico to look for other negotiating avenues. The move to bilateral discussions could be an attempt to push...

Likelihood of more closed NAFTA chapters buoys stakeholders, reduces fears of withdrawal

MEXICO CITY – NAFTA negotiators here are close to finishing chapters on sanitary and phytosanitary measures and technical barriers to trade, giving some advocates of the agreement hope that their progress will lessen the chances of President Trump withdrawing from it. Private-sector sources say they are hopeful that measurable technical progress as well as congressional influence will be enough to keep withdrawal at bay, but note that the unpredictability of the Trump administration means nothing can ever be certain. The...

Steel, aluminum announcement unlikely to impede largely technical progress at NAFTA round

MEXICO CITY – President Trump’s announcement of impending global tariffs on steel and aluminum imports is not expected not change the course of negotiations at the seventh NAFTA round here, with Canada and Mexico waiting for the White House to release its final decision next week – including what, if any, countries will be excluded from the tariffs, sources said. Negotiators are focusing on closing non-controversial chapters and have already made some progress in that area. Mexican chief negotiator Kenneth...

Analysts offer bleak assessment of Trump’s trade policy in Asia

A panel of trade analysts on Wednesday painted an unflattering picture of President Trump’s approach to trade with Asia during his first year in office. “If I were to characterize the first year of Trump’s trade policy in Asia, I could think of describing it in one word: disaster,” said Jeffrey Schott, a senior fellow at the Peterson Institute for International Economics, at a Brookings Institution event. “It’s been a disaster for the United States of America.” Eswar Prasad, a...

Report: U.S. withdrawal from NAFTA would hurt chemicals exports

U.S. chemical exports could drop by roughly 45 percent if the U.S. pulls out of NAFTA, leading to price increases for American consumers and an opportunity for China to supply chemicals to Mexico and Canada instead, the American Chemistry Council says in a new report . The report, released on Feb. 28, says NAFTA has allowed U.S. chemical exports to flourish. They are projected to reach $59 billion by 2025, it states. However, a withdrawal would have “virtually the opposite...

NAFTA negotiators expected to close good regulatory practices chapter in Mexico City

NAFTA negotiators in Mexico City will close a chapter on good regulatory practices today, a top Mexican official said. Kenneth Smith Ramos, Mexico's chief NAFTA negotiator, tweeted on Thursday morning that the chapter “establishes standards never before embodied” in a free trade agreement. The chapter “promotes transparency in the regulatory process and creates a committee to promote cooperation,” he added in another tweet, according to an informal translation. The good regulatory practices chapter has been seen as non-controversial and close...

U.S. Dairy Export council, citing new analysis, warns against terminating NAFTA

NAFTA is critical to maintaining U.S. dairy exports to Mexico, a major U.S. dairy group said in a new analysis released on Tuesday. The analysis also warns of competition in the Mexican market both from the European Union and from countries in the updated Trans-Pacific Partnership, which is due to be signed next week. “This analysis not only illustrates the importance of preserving existing market access to Mexico under North American Free Trade Agreement (NAFTA), but also demonstrates why we...

Mnuchin has had ‘high-level’ talks with counterparts on rejoining TPP

Treasury Secretary Stephen Mnuchin has had “very high-level” discussions with his counterparts from Trans-Pacific Partnership countries on a possible return to the trade pact, although re-entry is not a priority for the U.S. today, Mnuchin said Tuesday. “For the moment our priority is some of the bilateral agreements that we’ve talked about; that’s really the priority. But I have met with several of my counterparties and other people and we’ve begun to have very high-level conversations on TPP. It’s not...

White House releases list of House participants in GOP trade meeting; NAFTA, 232 likely to be addressed

The White House has released the list of Republican House lawmakers attending a meeting at the White House today on trade issues. Many are ardent free-trade advocates. They include House Ways & Means Committee Chairman Kevin Brady (R-TX) and trade subcommittee Chairman Dave Reichert (R-WA). The lawmakers are expected to discuss the importance of NAFTA, but sources said they were also likely to touch upon expected Section 232 actions on steel and aluminum. The full list: Rep. Mike Bishop...

Hatch predicts 'veto-proof' action to keep NAFTA if Trump withdraws

Congress likely will take “veto-proof” action to preserve the North America Free Trade Agreement if President Trump withdraws from the deal, Senate Finance Committee Chairman Orrin Hatch (R-UT) told reporters on Tuesday. “He certainly knows how to negotiate, and that’s certainly part of his negotiating posture,” Hatch said of the president's oft-repeated threat to withdraw from NAFTA. “But yeah, I’m concerned because we can’t afford to pull out of NAFTA.” Asked what Congress would do if Trump decided to withdraw,...

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