Friday, August 17, 2018

The vise tightens on Canada's Justin Trudeau as Trump upgrades Mexico NAFTA

The Mexico upgrade deal on NAFTA, which is about to be announced, according to a top story on Drudge, gets Mexico squared away and leaves Canada's P.M. to face Trump alone.

Trump, being a dealmaker, seems to have gotten a better deal for U.S. companies and workers with Mexico, something extraordinary, given the negative rhetoric that has flowed over illegal immigrants from both sides of the border, and given the perception that Trump is anti-free trade.

The heaviest changes will be to auto rules, an interesting thing, given that Mexico's new incoming president, Andrés Manuel López Obrador, as a former mayor of Mexico City and conversant in the surrounding Mexico state where the auto plants are, would be well familiar with the auto trade and its importance to Mexico.

The other thing, not mentioned in the LAT piece, is that Trump is going easy on Mexico's farm trade, given that farms in Mexico harvest their crops at a slightly different time of year from farms in the U.S., meaning that the fresh products don't overlap that much on store shelves.

Canada has shown less urgency to complete a revision of the 24-year-old pact, but is expected to return to the bargaining table once the U.S. and Mexico settle their differences.

"We've seen virtually overnight Mexico and the U.S. are moving forward and Canada looks left behind and then forced into a position where it has to make a significant set of concessions just to be readmitted to the talks, it seems."

With a Mexico deal in hand, Trump will be that much better placed to get the deal he wants from Canada.

https://www.americanthinker.com/blog/2018/08/the_vise_tightens_on_canadas_justin_trudeau_as_trump_upgrades_mexico_nafta.html 

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