Second Round of NAFTA Revision Talks Concludes

SEATTLE (Scrap Monster): NAFTA negotiators “have found mutual agreement on many important issues,” according to the U.S. trade representative, but President Trump suggested that the United States still “may have to terminate.”

Both as a candidate and as president, Trump has bashed the North American Free Trade Agreement (NAFTA) as being unfair to the United States. Amid threats to withdraw from the pact, his administration initiated talks with Canada and Mexico to revise the deal.

The second round of renegotiation talks recently concluded with representatives of the three countries jointly announcing that, “Important progress was achieved in many disciplines and the Parties expect more in the coming weeks,” and with U.S. Trade Representative Robert Lighthizer’s comment about finding “mutual agreement.”

“The successful conclusion of these negotiations will update NAFTA through new rules that will generate important economic opportunities for all three countries, fostering further growth in the region for the benefit of the three NAFTA partners,” the negotiators stated.

A few days before those negotiations began, though, Trump reiterated his doubts about the agreement, tweeting on Aug. 27, “We are in the NAFTA (worst trade deal ever made) renegotiation process with Mexico & Canada. Both being very difficult, may have to terminate?”

One of the issues being discussed is the Trump administration’s effort to revise the agreement’s country of origin rules, especially in regard to the production of automobiles.

“Rules of origin, particularly on autos and auto parts, must require higher NAFTA content and substantial U.S. content,” Lighthizer said before the second round. “Country of origin should be verified, not ‘deemed.’”

The third round of negotiations is scheduled for Sept. 23-27.

Courtesy: AIIS