nafta talks deadlock the main sticking points
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

NAFTA talks deadlock: the main sticking points

Arab Today, arab today

Arab Today, arab today NAFTA talks deadlock: the main sticking points

US Trade Representative Robert Lighthizer, minister Chrystia Freeland , and Ildefonso Guajardo Villarreal.
Washington - Arab Today

Trade talks deadlocked Tuesday between the United States, Mexico and Canada.

Officials extended negotiations into 2018, putting the future of the North American Free Trade Agreement in doubt.

Canadian and Mexican officials have rejected major proposals from Washington.

Here are the main sticking points:

- The sunset clause -

The Trump administration has proposed a NAFTA clause that would allow the treaty to expire after five years, effectively requiring the three governments to reauthorize it.

The proposal has met stiff opposition from Ottawa and Mexico City, as well as from US industry.

As the fourth round of talks concluded in Washington on Tuesday, Mexican Finance Minister Ildefonso Villareal said the proposal was "destructive" because "a new NAFTA must create the certainty necessary for job creation."

The US Chamber of Commerce has described the proposal as "dangerous" and said it was opposed by the "vast majority" of US business and agriculture, as well as key US lawmakers.

- Automotive content -

NAFTA requires that at least 62.5 percent of the components of a vehicle be made in one of the three member countries, in order that customs duties don't apply.

The Trump administration wants that figure increased to 85 percent, with 50 percent of those components made exclusively in the United States. The US also wants steel, aluminum, copper and plastic used in those components to be made part of the calculation, according to US and Canadian media.

The auto industry itself opposes the suggested new requirements for US content.

- Arbitration under Chapter 19 -

This little-used provision of the agreement allows arbitration by private legal experts to resolve disputes over countervailing duties and dumping.

The Trump administration has branded the provision as unfair to US businesses and workers, since a Chapter 19 process can overrule decisions made by US agencies.

But Canada has successfully used Chapter 19 arbitration to rebut US accusations that Canadian exporters sold lumber at below-cost prices.

"An effective, transparent and enforceable dispute settlement mechanism is essential to NAFTA," Canadian Foreign Minister Chrystia Freeland said Tuesday.

"Just as good fences make good neighbors, good dispute settlement systems make good trading partners."

In July, Mexican lawmakers also called on their government to reject any proposal during NAFTA talks to scrap Chapter 19 arbitration.

- Investor-State disputes -

Under NAFTA's Chapter 11, investors may take legal action directly against governments for claims of discriminatory practices.

Known as the Investor-State Dispute Settlement mechanism, such clauses have been attacked for allowing arbitration panels to overrule the findings of local courts and allegedly undermining national sovereignty.

The Trump administration appears opposed to the provisions, again raising the ire of the US Chamber.

"Far from infringing on anyone's sovereignty, it ensures that investors are treated fairly and compensated in the event of expropriation," US Chamber President Tom Donahue said last week.

- Canadian 'supply management' -

Dating to the 1970s, this system protects Canada's farmers and consumers from price swings for dairy and poultry goods but also keeps out foreign competition.

The US has reportedly asked for the system to be phased out within a decade, allowing for US exports of milk and poultry to Canada to begin.

Canada argues that American producers also benefit from state subsidies in the sector.

- Procurement -

Freeland said Washington had proposed limiting its NAFTA partners' access to US government procurement contracts.

"The United States has put forward a proposal that according to our calculations would give Canada and Mexico less access to the US government procurement market than Bahrain currently enjoys," she said.

Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

nafta talks deadlock the main sticking points nafta talks deadlock the main sticking points

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

nafta talks deadlock the main sticking points nafta talks deadlock the main sticking points

 



GMT 16:16 2014 Wednesday ,10 September

Samirah Ibrahim receives Saudi cultural attaché

GMT 09:32 2017 Sunday ,24 September

China confirms will limit oil exports to North Korea

GMT 19:56 2016 Saturday ,17 September

Typhoon Meranti death toll rises to 28

GMT 09:40 2018 Monday ,01 January

OIC Summit opens in Kazakhstan

GMT 06:37 2015 Monday ,07 December

Iran film directors protest colleague's jail term

GMT 18:37 2017 Friday ,25 August

Mental health issues should be prioritized

GMT 04:39 2017 Thursday ,31 August

Trump vows to right 'self-destructive' tax code

GMT 05:29 2017 Tuesday ,22 August

Celebrations across India on 71st Independence Day

GMT 10:54 2017 Wednesday ,11 October

Child obesity grows tenfold since 1975

GMT 02:31 2016 Tuesday ,06 December

Dubai Women Establishment delegation participates

GMT 04:29 2018 Wednesday ,19 September

North and South Korea: Kim and Moon hail new future

GMT 14:18 2013 Monday ,19 August

Newlywed Lebanese couple pose at car bomb site

GMT 11:11 2011 Friday ,12 August

Palestinian university ranks seventh in Arab world

GMT 15:16 2015 Wednesday ,26 August

UAE ambassador attends charity ceremony in Qalubiya

GMT 16:59 2016 Tuesday ,26 July

Hedge funds in new cycle of oil short-selling
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday