There are reports that the trade negotiators for both Canada and Mexico will reject the demands being made by the United States in the ongoing NAFTA negotiations. However, both negotiators will call for continuing talks, rather than walk away.
The notice will be delivered to US Trade Representative Robert Lightizer, and is expected to constitute a near-outright rejection of the entire US approach, raising questions about the path forward.
As noted by CNBC, “It remains to be seen how President Donald Trump, who has repeatedly slammed the 23-year-old trade agreement, will react to the position. Trump has threatened to scrap the free trade agreement if the countries cannot strike a deal to rework it.”
US demands on auto-part rules of origin were met with widespread opposition in both Canada and Mexico. Additionally, the US is reportedly pushing for the end of supply management in Canada, something Canadian negotiators are very unlikely to support.
There are three additional rounds of negotiations planned, concluding in December, though there is an increasing possibility negotiations will continue into 2018.
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