Canada Rejoins NAFTA Talks As U.S. Autos Tariff Details Emerge

[Pavel + 384]

Canada’s top trade negotiator praised Mexico’s trade concessions on autos and labor rights on Tuesday as she rejoined NAFTA talks, while U.S. lawmakers warned that a bilateral U.S.-Mexico trade deal would struggle to win approval in Congress. Automotive executives and other sources also told Reuters on Tuesday that the bilateral U.S.-Mexico deal announced on Monday allows President Donald Trump to impose 25 percent tariffs on imports of Mexican-made passenger vehicles and auto parts above certain volumes. If Trump proceeds with the tariffs now under consideration based on national security concerns, Mexican duty-free exports of cars and sport-utility vehicles to the United States would be capped at 2.4 million vehicles annually. Volumes above that level would be subject to tariffs, auto industry officials and other sources said. Canadian Foreign Minister Chrystia Freeland said that Mexico’s “difficult” concessions to the United States on Monday would pave the way for productive talks this week as all three countries race toward a Friday deadline for a deal to modernize the 24-year-old North American Free Trade Agreement.

[ThunderBlade + 231]

Canada's Trudeau says he will defend dairy farmer protections in NAFTA . And, we know that U.S has trade surplus with Canada on dairy. But, dairy is such a small part of both economies. To allow a massive trading relationship to go down in flames over milk is just plain crazy. 

[franco + 96]

3 minutes ago, ThunderBlade said:

Canada's Trudeau says he will defend dairy farmer protections in NAFTA . 

NAFTA is worth $400B (20% GDP)

Dairy is worth $9B (<0.5% GDP)

Trudeau is risking 20% of Canada's economy to protect the dairy farmers. 

[rainman + 263]

Without Canada,  they could call it the North American Free Trade Thingy (NAFTA). Or, if not that, I suggest NAFTAtoo - Vol.2😉