Trump Administration Applies Tariffs on Canadian Paper
- Author: Zachary Reyes Jan 12, 2018,
Jan 12, 2018, 20:27
Economists, strategists and analysts have been busy over the past several months forming contingency plans should NAFTA talks fail this year.
The announcement will complicate attempts by the U.S.to use threats of withdrawal as leverage in the upcoming, and penultimate round of the NAFTA negotiations to be held in Montreal, Canada between January 23-28.
From September to October 2017 the value of United States freight flows to Canada was up 2.5% to US$49.7bn. As a state, we generate an estimated $178 billion in trade annually with Mexico, which has been Port Houston's top trading partner most of the past decade.
As Public Citizen's Global Trade Watch noted, "Trump launched the promised NAFTA renegotiation in August, but US corporate interests have persuaded Canada and Mexico to not engage on USA proposals to transform NAFTA in ways that US unions, small businesses and consumer groups have long argued would slow job outsourcing and downward pressure on USA wages".
Avery Shenfeld, an economist at CIBC said Wednesday a U.S. withdrawal from NAFTA was a downside for Canada's central bank, which had in its forecasts assumed a status quo in trade relations.
Any of the three countries can pull out of NAFTA if they give six months' notice, but the agreement remains in effect. Replacing NAFTA, however, does not mean ending trade with Mexico and Canada - something that would not happen even if NAFTA was eliminated entirely, as the editorial implies.
Trump has repeatedly threatened to walk away from the 1994 pact between the United States, Canada and Mexico unless major changes are made.
That's why it's so important for the U.S.to approach the renegotiation of long-standing trade agreements with an eye toward the significant impact trade has had on the tech industry here at home.
Ribera says that despite the importance of trade to Texas farmers, NAFTA negotiations are now not focusing on agricultural issues. Combined Mexico and Canada represented almost 24 percent of US rice exports in 2016.
The Canadian dollar rose 4.2 cents to 0.79.74 USA dollar. A full 40 percent of Texas' exports travel to Mexico.
Full-year production came to 3.77 million units in 2017, while exports totalled 3.10 million units, according to AMIA. The integrated North American market is dependent on the ability to transport live animals across borders.