nafta talks deadlock the main sticking points
Last Updated : GMT 05:21:58
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 05:21:58
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

 



Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation
Arab Today, arab today For the Variety of Interior Design Styles

GMT 11:14 2017 Tuesday ,19 December

For the Variety of Interior Design Styles

GMT 15:39 2018 Friday ,14 December

Electricity minister receives MANTECH delegation

GMT 13:27 2018 Tuesday ,11 December

France and the crisis of democracy

GMT 19:51 2017 Wednesday ,13 September

DEWA MD and CEO welcomes Ambassador of South Sudan to UAE

GMT 11:14 2017 Thursday ,20 April

Serena Williams factbox

GMT 19:32 2015 Sunday ,13 September

Confucius family tree to include more descendants

GMT 18:47 2017 Friday ,02 June

Arab League condemns blast in Iraq

GMT 14:33 2018 Wednesday ,12 December

Political turbulence likely to continue unabated in 2019

GMT 13:18 2016 Saturday ,10 December

Foreigners purchase shares worth AED2.5 bn on Dubai

GMT 09:47 2016 Friday ,16 December

Syria security source: Aleppo evacuation suspended

GMT 06:19 2017 Saturday ,08 April

Bahrain to host AVA General Assembly

GMT 13:09 2017 Friday ,03 March

405 Story appoints Blonde and Black Publicity

GMT 01:52 2017 Tuesday ,10 January

Official UAE school calendar 2017-2018

GMT 23:31 2017 Thursday ,30 November

Mohamed bin Zayed receives ICRC President - UPDATES

GMT 18:08 2017 Sunday ,08 January

Anderson smashes New Zealand to T20 sweep

GMT 21:29 2016 Wednesday ,07 December

Omani Deputy Prime Minister meets British Prime Minister
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
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday