US, Mexico moving to sign FTA, with Canada not behind

Donald Trump and John McCain.         Source Associated Press

Donald Trump and John McCain. Source Associated Press

"So, the main mechanism is actually through reducing fear of the business community that the world trading system can be seriously be disrupted by any of Trump's tactics - mainly because he's just not converting his harsh Tweets into severe sanctions, other than for China, who is feeling the brunt of his particular pressure at the moment".

The president of the largest union federation in the United States said Sunday that a reworked North American Free Trade Agreement would require Canada's involvement. It's not certain if Trump has the authority to codify a bilateral agreement with Mexico, and multiple Republican lawmakers, already skeptical of the president's trade policies, have indicated Canada needs to be part of a reimagined NAFTA that would need their Congressional approval.

NAFTA, which came into effect at the beginning of January 1994, lifted tariffs on virtually all goods traded among the US, Canada and Mexico. But Canada insisted that it would only sign a new agreement that is good for the country.

"There is no political necessity to keep Canada in the new NAFTA deal".

On Twitter, the president threatened to "terminate NAFTA entirely" if Congress balks at ratifying a revamped NAFTA that could go forward without Canada's involvement if ongoing negotiations fail. "We are concerned that excluding Canada from a final agreement will limit our export opportunities and hurt the USA economy", said Gary Shapiro, the head of the Consumer Technology Association, in a statement.

Gorka noted Canada has a almost 300-percent tariff on US dairy imports, while the European Union taxes USA vehicle imports at a rate approximately four times higher than the USA tax on European-made cars.

Trumka echoed Trump's sentiments about the negative impact of NAFTA, while noting much work remains before the deal with Mexico is finalized.

He said in a tweet issued on Saturday that it would be left of the new NAFTA if "fair deals for the US" isn't reached.

'If we don't make a fair deal for the USA after decade of abuse, Canada will be out. Talks to keep Canada in the bloc broke up on Friday but are expected to resume next week. "I think the key decision was freezing Canada out and then negotiating directly with Mexico".

Trump has charged that the deal wiped out American factory jobs. The White House set a deadline for Friday because it wanted to notify Congress in time for Mexican President Enrique Pena Nieto to sign the accord before his successor, Andres Manuel Lopez Obrador, takes office on December 1. Ottawa does have other complaints.

Trumka also criticized Trump's recently announced trade agreement with Mexico, saying that any effort by the White House to retool the North American Free Trade Agreement also should include Canada.

Experts have said the flashpoints include trade barriers that protect Canadian dairy farmers and Ottawa's insistence on keeping Nafta provisions for resolving disputes. The U.S. intends the new deal to completely replace the current NAFTA, said the official, who spoke on condition of anonymity.

A spokesperson said Trudeau also spoke with Jerry Dias, the president of the Unifor union which represents autoworkers, and Hassan Yussuff, the president of the Canadian Labour Congress.

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