Published: Sat, May 20, 2017
Worldwide | By Gretchen Simon

Mexico Will Not Accept Tariffs, Quotas in Renegotiated NAFTA

Mexico Will Not Accept Tariffs, Quotas in Renegotiated NAFTA

That started a 90-day period in which the administration must notify Congress of its goals for the talks.

Mr Lighthizer said Nafta had not kept up with changes in the economy and business over the last 25 years, including the boom in e-commerce. "So we're trying, also via our visits to the United States, to make clear that a fair agreement isn't just in the interests of German companies, but also the United States of America", added Gabriel, who is also Germany's vice chancellor. According to USA data, Germany and Mexico past year both ran trade surpluses of more than $60 billion with the United States, sparking complaints of unfair treatment from Trump, who has threatened aggressive measures to eliminate the deficit. A letter Thursday to congressional leaders notified them that negotiations with Canada and Mexico are set to begin. "With purchases exceeding 1 million bales, Mexico has emerged as one of USA raw cotton's top five export destinations, and NAFTA plays a critical role in North America's highly integrated textile and apparel supply chain". America's farmers and ranchers value them as customers and trade partners.

One of the more interesting responses to the notice came from a policy paper issued by Raymond Robertson of the Bush School of Government and Public Service at Texas A&M University, which shows "strong evidence for NAFTA's benefits and warns against throwing the baby out with the bath water".

"Many chapters are outdated and do not reflect modern standards", he said. "Ending NAFTA won't solve those problems". United States imports from Canada have roughly doubled since 1994, while Mexican imports are six times higher.

NAFTA is a multi-layer free trade agreement between the United States, Canada and Mexico.

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The statement was issued by Food and Agriculture Dialogue Co-Chairs Gary Martin, president and chief executive officer of the North American Export Grain Association, and William Westman, senior vice president for global affairs with the North American Meat Institute. In part, that's because trade represents a surprisingly small portion of the USA economy " 28 per cent in 2015, according to the World Bank, one of the lowest shares in the world. The American Farm Bureau looks forward to working with the administration, Congress, other agricultural groups, and officials in Canada and Mexico to protect these important markets while also addressing issues that have limited the trade potential of USA farmers and ranchers.

The National Grain and Feed Association, another organization weighing in on NAFTA, noted that one of every 10 acres of US farmland grows agricultural products destined for Mexico and Canada.

NPPC committed to work with the administration to preserve tariff-free market access for US pork exports to Canada and Mexico, which a year ago were almost $799 million and nearly $1.4 billion, respectively. The impact on some vulnerable USA industries was delayed.

"Trade agreements should create family-supporting jobs and ensure safe working conditions while reversing the disastrous offshoring of American jobs". It's why we recently announced the creation of an undersecretary for trade at U.S.D.A., because as world markets expand, we will be an unapologetic advocate for American agriculture. In fact, US manufacturing exports to Canada and Mexico have increased almost 260 percent over the past 23 years, and USA farm exports to the countries have grown by more than 150 percent. "Our integrated economies and supply chains support millions of jobs across the continent", she said. "Fully one-fifth of US agricultural production goes to export markets and the money that flows back doesn't just make American farmers richer".

Offering insight into how Mexico may seek to broker a deal, Moises Kalach, a linchpin of the country's private sector defense of NAFTA, said USA business leaders and government officials were increasingly persuaded that existing supply chains should not be disrupted - but that future production lines could be tailored to provide more work for North America. A trade war could devastate rural economies that are often fragile to begin with.

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