Mexico expects NAFTA renegotiation from May after industry consultations
- Author: Larry Hoffman Feb 12, 2017,
Feb 12, 2017, 5:11
Trump called Nafta a one-sided deal that favored Mexico. And has repeated his promise to renegotiate it, "By a lot, not just a little".
Nor is it a sure thing that Mexico and Canada would cooperate.
The row prompted Pena Nieto, who vowed that Mexico will never pay for the barrier, to cancel a meeting with Trump in Washington.
The European Union and Mexico have set two new rounds of trade talks in the first half of 2017, an acceleration of negotiations to deepen economic ties in the wake of Donald Trump's inauguration as USA president. The White House, meanwhile, denied the President made any such remarks.
Barrett at CSS cautioned that moving too fast toward protectionism could hurt the largest part of the American, and Minnesota, economy - consumer spending.
"There is quite a good bit of energy connectivity along the U.S. -Mexico border", she noted, cautioning a NAFTA collapse could "get expensive for the constituencies that now benefit from that power and energy trade in that region".
Rep. Gene Green, a Houston Democrat who voted against NAFTA when the House ratified it in late 1993, now credits the deal as an engine for Texas jobs, even if its effects have been uneven. "The big deal, from our perspective, is the Canada-U.S. agreement".
There's another little known advantage Mexico enjoys if the parties walk away from NAFTA: Mexico's president does not need to get approval from his Congress is he wants to re-impose taxes nearly instantly on USA products. "If you reopen it it could be worse or better", Green said.
Trump's stance could push Canada closer to China and other Asian rivals. Hufbauer said the acronym "NAFTA" is a dirty word for both Republican and Democratic protectionists. President Enrique Pena Nieto seconded the May target on Wednesday, adding that the USA will begin preparations similar to Mexico's. We're going to take care of that also. "Let's hope he thinks more comprehensively and is more deliberative and consultative" when talks actually begin.
Lawmakers at the meeting included the leaders of the Senate Finance Committee, Chairman Orrin Hatch and ranking member Sen.
"The consultation process is indispensible to achieve a modernization of NAFTA that meets national interests", it said.
Some U.S. producers of corn, soybean meal and distillers dried grains (DDGs), an ethanol byproduct, are trying to accelerate sales to Mexico because they are uncertain about the risk for new tariffs to disrupt trade, said Rafe Garcia, general manager for U.S. operations at shipper Primos & Cousins USA.