A Setback for NAFTA Negotiations

0
137

It has emerged that a quick solution for the North American Free Trade is far from being achieved. The three nations involved agreed to postpone the negotiations for the treaty up to next year so that they could decide on how they can rewrite the plan. During a meeting, Canada, America, and Mexico all agreed that there was a significant conceptual gap in what they were trying to achieve. This comes after the negotiators of the deal failed to reach consensus on the thorniest provisions that constitute the deal. As a result, the extended break will ensure that they discuss the treaty with interest groups as well as politicians in their respective nations. Once they have achieved this, they will meet in Mexico City in what will be the fifth round of talks. This will likely take place in mid-November, a month from now. While the three nations had agreed to end the negotiations by the end of this year, this latest setback pushes back the plans up to the first quarter of next year. This is just an explanation of the potential demise that has threatened the trade pact since Trump became the president of the free world. At the same time, the 1994 trade agreement is crucial to North American commerce.

The three nations can’t quite agree on the percentage of products made in the United States. At the same time, the three nations cannot agree on whether the deal should be renewed after every five years. However, finding a solution for the trade pact will be a difficult task as there are political events in the respective nations with each country keen on hardening its stance on the issue. As for Mexico, presidential campaigns will begin soon. This will mean that candidates will touch on the issue and none of the candidates is expected to side with the deal as it’s seen like siding with Donald Trump who is quite unpopular in Mexico. While the legislation will expire in July, this will offer the Trump administration the opportunity to negotiate the deal and present it to Congress. While Canada is expected to begin its provincial elections soon, the same will be happening in America as mid-terms are fast approaching. Secretary of commerce Wilbur L. Ross recently said that following the current gridlock, it’s unlikely that the legislation will be renewed by the Congress. The legislation is referred to as the Trade Promotion Authority.