Contrary to Trump's opinion, 'usually, all sides lose in a trade war'
- Author: Zachary Reyes Mar 10, 2018,
Mar 10, 2018, 14:12
Acknowledging the fears that Trump's surprise announcement last week could spark a trade war, Mnuchin also hinted that the final implementation may address some of the issues.
"I've said I'm OK with modernizing NAFTA, it's a 25-plus-year-old trade agreement so that make sense".
"I don't think so, " said John Weekes, Canada's chief negotiator in the original deal.
Trump vowed last week to impose a 25 percent tariff on steel and 10 percent on aluminum imports to the USA, sending global markets into a dive that saw the sell-off of shares in companies producing those commodities. Then there's the third, middle-of-the-road approach others have suggested, and which Navarro appeared to hint at: offering short-term relief for Canada and Mexico, while continuing to use the tariff threat as NAFTA leverage.
Mexico's Economy Minister Ildefonso Guajardo raised the prospect of reprisals if Washington pushed ahead with tariffs and insisted NAFTA remain "a trilateral accord" in response to a USA proposal to hold talks with Canada and Mexico separately.
Eighty-six per cent believe U.S. President Donald Trump will exit NAFTA or will attempt to negotiate unfairly in favour of U.S. interests and 92 per cent say Canada should be looking to strengthen trade partnerships with other countries, particularly in Europe and Asia. Efforts to convey to the administration the benefits of steel trade with Canada "can be said to have paid off in this instance", he said, and they will continue to press their case.
Opponents have fought back, saying that consumers would end up paying more for a wide range of goods from cars, to canned beer and canned soup.
They'll hurt every business that makes things from steel or aluminum.
"To complete NAFTA 2.0, we will need agreement on roughly 30 chapters".
"As the No. 1 customer of American steel, Canada would view any trade restrictions on American steel and aluminum as absolutely unacceptable", she told reporters at the conclusion of the NAFTA talks on Monday.
Canada-U.S. relations have always had a hint of that size mismatch, but it was softened by neighbourly feeling.
The United States under President Trump has been retreating from leadership roles in Asia and Europe.
However, he said the deal has benefited the US, which he said has about 9 million jobs that depend on free trade with Canada. We're going to straighten it out, and we'll do it in a very loving way. He says we've taken advantage of the U.S. He says Canada needs to be brought into line.
According to the Japan Iron and Steel Federation (JISF), most of Japan's steel exports consist of "high value-added products that US manufacturers can not make". "We are focused on making North America more competitive in the world and creating more jobs".
"What I can confirm, and he's mentioned this, to the extent that we reach our objective in renegotiating NAFTA, which is the priority, that Canada and Mexico will be exempt from those tariffs", he told the House panel. "We have to protect & build our Steel and Aluminum Industries while at the same time showing great flexibility and cooperation toward those that are real friends and treat us fairly on both trade and the military", he wrote.