Global News

Ending NAFTA could cost USA up to 50000 auto parts jobs

Ending NAFTA could cost USA up to 50000 auto parts jobs

But there are growing doubts that it will survive through its 24th.

During his presidential campaign and early in his term, Trump fixated on the auto industry and carmakers investing in Mexico, criticizing companies including Ford Motor Co., General Motors Co. and Toyota Motor Corp. "Among conditions demanded by the US are a significant increase in regional content - particularly USA content - in the region's exports, a uniform upper limit for government purchases, some restrictions to agriculture products coming to the USA from Mexico and Canada, and the elimination of the chapter on resolution of controversies".

U.S., Canadian and Mexican negotiators are meeting in Arlington, Virginia, this week for a fourth round to try to revise the 23-year-old agreement, which allows the tariff-free flow of vehicles and parts across the three borders. In a sign of how contentious things could get, the countries extended the negotiations for two extra days, through Tuesday.

"What is the administration going to do?" Commenting on a recent article he penned for Americas Quarterly, Herrera outlines why he thinks that more independents and parties competing to win will dampen prospects for one frontrunner in particular-leftist ex-Mayor of Mexico City Andrés Manuel López Obrador. "We have to protect our workers, and in all fairness, the prime minister wants to protect Canada and his people also". He told Forbes magazine: "NAFTA will have to be terminated if we're going to make it good". "I said we'll renegotiate".

Phil Levy, senior fellow at the Chicago Council on Global Affairs, pegs the chance of NAFTA's survival at less than 50 percent.

The end of NAFTA would send economic tremors across the continent.

Anthony Martial happy with life at Manchester United amid Arsenal interest
The feat is indeed quite remarkable, and shows that Martial is moving on well from the struggles of last season. The forward has scored five goals and made six assists in all competitions for Jose Mourinho's men this term.

If Britain did join NAFTA, manufacturers wanting to export to the European Union and North America would have to produce goods in accordance with the two separate sets of rules, according to trade analysts. Consumers have benefited from lower costs.

"There's been huge investments in Canada, the US and Mexico, that are long-term assets", said Don Walker, chief executive officer of Magna International Inc. a Canada-based parts maker with more than 25,000 employees in the U.S.

Before the renegotiation began in August, many business and farm groups hoped the Trump administration would settle for tweaking rather than abandoning the trade deal — updating it, for example, to reflect the rise of e-commerce. In addition, the United States wants to add a new 50-percent USA -specific content requirement, something that was not in the earlier agreements.

U.S. Commerce Secretary Wilbur Ross defended the nation's government procurement proposal on Wednesday, saying it was based on the relative sizes of the markets in the three countries. It also wants to scrap a dispute-resolution process favored by Canada. Mexico could leave NAFTA and have the strength to move on without any serious long-term structural damage to the economy, he said. According to reports by Canadian media, Prime Minister Trudeau told President Trump behind closed doors that his preferred option was to modernize the continental accord. "The circumstances are quite unpredictable and we are ready for anything".

Canada is the largest secure supplier of energy to the United States.