Reuters.com’s David Ljunggren and Roberta Rampton recently posted an article on their website to update us on the current standings between the U.S., Canada, and Mexico when it comes to trade. All credit goes to the authors of the original article. Here is a summary of what you should know:
Just recently, the Trump administration and Canada solidified the deal to save NAFTA, in a “trilateral pact with Mexico”.
There had been danger of the pact collapsing. In fact, there were meetings and discussions right down to the wire to settle the agreement. How did the deal get sealed yet again? President Trump “coerced” the two countries to “accept more restrictive commerce” with our country. What Trump did with this agreement mirrors what he did with China--his goal is to lower U.S. trade deficits.
This new NAFTA agreement, called the “United States-Mexico-Canada Agreement (USMCA)” stays away from the sort of high tariffs we saw in relation to China, and it will make it more difficult to have cars cheaply made in Mexico--the aim here is to keep and bring jobs (back) to the United States. In regard to Canada, the country is relieved that the U.S. did not dismantle NAFTA, and they are looking forward to having “freer markets, fairer trade, and robust economic growth” as said in a joint statement with the U.S. The U.S.-Canada portion of the agreement will be enacted sometime after the end of November, the U.S.-Mexico agreement being settled this past August.
Although some concessions needed to be made from each of the other countries in order to finalize all parts of the agreement, the deal will “lead to a rise in trust in the U.S. economy” as quoted by the article.
To read a more in-depth explanation of the USMCA agreement, head over and read the full article at: https://www.reuters.com/article/us-trade-nafta-ecommerce/final-tweaks-in-north-american-trade-deal-keep-lid-on-e-commerce-idUSKCN1MF2NO