Mexico concerned with United States desire to cut trade deficits

US Farm Lobby Turns Up Heat On Trump Team As NAFTA Talks Near

-Canada relationship. Such a move could result in a lot more tit-for-tat trade actions and potentially disrupt business between the countries. But Chapter 19 allows a foreign country, like Canada, to appeal this decision before a panel made up of officials from both countries. These panels issue binding decisions, which have tended not to fall in America's favour; the elimination of Chapter 19 would force Canadian companies to fight unfair-trade accusations in US courts.

While Mexico and Canada are both largely excluded from USA protectionist policies which might include restrictions on imports, this exemption is likely one of the first things that will be targeted under the new administration's efforts. Canadian Minister of Foreign Affairs Chrystia Freeland said the USA list was "part of its internal process" although a source familiar with the Canadian government's thinking said the document was "not earth shattering".

The document also outlines provisions to protect against currency manipulation, ideas that are less applicable to NAFTA countries than to others with which the USA could seek bilateral agreements using similar language.

The steelworkers, who did not support the TPP and want controversial investor-state dispute settlement provisions (NAFTA's Chapter 11) removed from NAFTA, are one of several groups publicizing their submissions to Canada's consultation process. But under the terms of NAFTA, Canada and Mexico are always excluded from those penalties. NAFTA rules already require that products must contain 62.5 percent North American content to qualify for duty-free treatment under NAFTA.

John Melle will be the Trump administration's chief negotiator. For example, if Canada closes its doors to U.S. dairy products, might the United States return to dairy export subsidies to help its dairy industry?

For obvious reasons, scrapping this exception for Canada and Mexico seems like to generate their opposition.

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Among other things, the Trump administration wants better access for USA agricultural exports, freer trade in telecommunications and online purchases and an overhaul of the dispute resolution mechanism.

The right way to judge trade deals is to ask instead whether they promote competition and efficiency for all participants.

A more open Canadian market will benefit both the U.S. and New Zealand dairy industries. Maybe those ideas sound familiar: They were main elements of the ambitious Trans-Pacific Partnership negotiated by the previous administration and then abandoned by Congress. Changes along those lines, cautiously implemented, could serve to modernize Nafta and better equip it for modern trading conditions and new kinds of trade. This provision in the NAFTA goals would do away with the protections Canada is still able to maintain on the market, opening it up to American competition.

Conservatives and New Democrats are joining forces in a bid to pressure the Trudeau government to reveal its priorities for the imminent renegotiation of the North American Free Trade Agreement.

Hoback said the government could at least identify "what are the do-not-touch items". The side agreements' enforcement mechanisms are virtually toothless. We were glad to see that listed as the top objective in the agricultural section of the administration's plan. As Canada prepares itself to renegotiate the deal, it must enter talks with its guard up to ensure a healthy economic future. It's not clear whether Mexico, which has the most work to do to meet these requirements, will oppose them now that they are receiving less in return.

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