Free Trade agreement: Trump is considering alternative to NAFTA

Trump is thinking about two separate deals with Mexico and Canada. They could replace the NAFTA agreement. Meanwhile, Canada is also filing a complaint against US customs duties.

Free Trade agreement: Trump is considering alternative to NAFTA

US President Donald Trump appears to be considering an alternative to North American Free Trade Agreement (NAFTA). "I wouldn't mind a separate deal with Canada and a separate deal with Mexico," he said in Washington. "These are two very different countries." binational agreements could replace trinational NAFTA agreement, which is currently being negotiated at request of United States. "We lose a lot of money with Canada and we lose a fortune with Mexico," Trump justified his claim.

The NAFTA negotiations were finally bogged down. Trump had repeatedly threatened to cancel it altoger. NAFTA was a "terrible deal" for US, he said again on Friday. In Twitter, he wrote that Canada had to open its markets and dismantle trade barriers. "They make a really high profit in trading with us." Canada and Mexico wanted to continue negotiations last. Because talks last longer than expected, U.S. economics minister Wilbur Ross ruled on Thursday to continue to exempt Mexico and Canada from customs duties on imports of steel and aluminum. On 1 June, derogations were expired. Mexico and Canada called this unacceptable and announced countermeasures.

As before EU, Canada has now filed an official complaint with World Trade Organisation WTO against US tariffs on steel and aluminium. That reported Canadian media at night. The customs duties imposed by US government on pretext of national security were contrary to United States ' international trade obligations and WTO rules, declared foreign Minister Chrystia free. The Canadian government, like EU, had announced customs duties, country's tariffs for US goods worth almost eleven billion euros. The duties are to enter into force on 1 July and, among or things, to meet yoghurt, coffee and washing machines from United States.

Canadian Prime Minister Justin Trudeau blames United States for stalling of NAFTA negotiations. He was willing to agree on a new NAFTA deal this week. Then US vice-president Mike Pence made a five-year clause on condition that agreement would have to be renegotiated in five years ' time. The import duties met in addition to Canadians also Americans, Trudeau said. Canadian steel exports are not a threat to national security of United States.

NAFTA was closed in 1994 between United States, Mexico and Canada. The agreement is currently one of most comprehensive trade agreements in world, allowing free access to goods and services between three states. NAFTA is particularly important for Mexican economy: a large part of exports – about 80 percent – go to USA. NAFTA's economic performance is roughly equivalent to economic performance of entire EU. However, unlike European Union, NAFTA is not a supranational organisation in which Member States transfer sovereignty rights.

Date Of Update: 02 June 2018, 12:02

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