Global News

Trump warns it's 'possible' the U.S. will drop out of Nafta

Trump warns it's 'possible' the U.S. will drop out of Nafta

In his meeting with Trump, Trudeau was expected to remind the president that Canada is the United States' biggest export customer, with largely balanced two-way goods and services trade, and is not the cause of USA manufacturing jobs lost under NAFTA, Canadian officials said. This week the influential US Chamber of Commerce warned it was time to "ring alarm bells" over the NAFTA talks.

Freeland describes the USA administration as the most protectionist since the 1930s while noting the United States runs a surplus in the trade of goods and services with Canada.

"We are much worse off with a bad deal than without a deal", said Guillermo Vogel, Vice President of Steelmaker Tenaris, who co-hosted a meeting of Mexican and USA business leaders in Mexico City aimed at pursuing strategies of defending NAFTA.

"My optimism toward NAFTA, toward a renegotiation, isn't based on personality or reading political tea leaves", Trudeau said following his talks with Trump. He has testified before the U.S. Senate committees on foreign relations and the judiciary.

Mexico's foreign relations secretary says his country won't accept "limited, managed trade", an apparent reference to demands for higher United States and regional content rules on products like auto parts.

Iran's leader warns implications of controversial vote in Iraq
During the period, Iran's exports to Turkey amounted to $5.15 billion, while imports from the country reached $2.1 billion. Iraq's autonomous Kurdistan region said on Tuesday it was calling presidential and parliamentary elections for November 1.

Freeland, who says Canada buys more from the United States than China, Britain and Japan combined, told CTV television on Sunday that Trudeau's message to Trump at their White House meeting would be "We are your biggest client".

Trudeau later said he was optimistic that an agreement would be reached. He said "it would not be the end of the world". Those include United States demands to adjust the rules of origin, which would increase the percentage of the content of vehicle parts and other materials that would come from NAFTA countries in order for a good to qualify as duty free - a specific concern for the North American auto industry. But some agricultural products would be slapped with with far higher duties, including a 25% hike on shipments of beef, 45% on turkey, 75% on chicken, potatoes and high fructose corn syrup sent to Mexico from the US. The National Automobile Dealers Association said it was concerned about any changes that would make cars costlier.

Meanwhile, US Chamber of Commerce president Thomas Donohue said that several issues under discussion could scotch the entire effort. "Any trade proposal that makes multinational corporations nervous is a good sign that it's moving in the right direction for workers".

Chris Sands, a professor at the Nitze School of Advanced International Studies at Johns Hopkins University, said Canada's problems marked "a new era of tough love" with Washington. "We have always understood that draining the swamp would be controversial in Washington".